National Federation of Agricultural Cooperative Associations JA is the abbreviation for Japan Agricultural Cooperatives. JA Bldg., 1-3-1 Otemachi, Chiyoda-ku, Tokyo 100-6832 TEL : +81-3-6271-8055 FAX : +81-3-5218-2506 Website : www.zennoh.or.jp Published in December 2020 ＩＮＤＥＸ ZEN-NOH REPORT Message from ZEN-NOH Representatives Corporate Identity of the ZEN-NOH Group About ZEN-NOH - JA ZEN-NOH ZEN-NOH as a Cooperative We, the ZEN-NOH Group International Network ZEN-NOH in Numbers —one unit of the JA Group—, Our environment - Enhancing Production Efficiency to Compensate for a Shrinking Production Infrastructure are a trusted and reliable bridge The Changing Face of Consumption Expansion of the Global Market for Food and Agricultural Products linking producers and consumers. Our initiatives - Establishment of Production Infrastructure Securing Our Position as a Leading Brand for Food Products Building Our Strategy for Developing Overseas Markets We strive for reliability in our three primary roles: Support for Building Healthy Local Communities ・We support commercial agriculture and agricultural lifestyles and strive to Alliances – Collaboration with Business Enterprises Initiatives Contributing to the Realization of the SDGs promote the development of vibrant producing regions. Our businesses - ・We deliver safe, fresh, domestically produced agricultural and livestock Sales Development products to consumers. Export Business Agribusiness General Planning ・We contribute to the preservation of the global environment. Rice Business Farm Produce Business Fruit and Vegetables Business Fertilizer Business The JA Group’s Fundamental Vision Agrochemicals Business JA Manifesto Agricultural Machinery Business We, members, employees and officers of JA, act in accord with the fundamental definitions, values Horticultural and Packaging Materials Business and principles of cooperative union activities (independence, self-reliance, participation, democratic Facilities and Agricultural Residential Business management, fairness, and solidarity). We will forecast environmental changes from a global Livestock Product Sales Business perspective and renovate our organization, business, and management. Livestock Production Business We will also cooperate with cooperatives in local communities, across the country, and all around Dairy Business the world, in an effort to realize a more democratic and fairer society. To this end, we will fulfill Energy Business our role in society as a community-based agricultural organization sincerely, by carrying out the Life Support Business following initiatives. ZEN-NOH’s Research and Development Department We will: PR/SR activities - (1) Develop agricultural industries in regions to protect food, nature, and water of our country. Social Responsibility Activities (2) Build local communities where people can live a safe and bountiful life by making a Our organization - contribution to the environment, culture, and welfare. (3) Achieve cooperative results through active participation in and solidarity with JA. Structure of the JA Group (4) Ensure sound management of JA and strengthen confidence in JA in accordance with the Corporate Governance principles of independence, self-reliance and democratic management. Financial Information (5) Pursue the achievement of meaningful lives together through learning the spirit of Officers cooperation and implementing cooperative activities. Group Companies ZEN-NOH Profile

2 ZEN-NOH REPORT 3 Message from ZEN-NOH Representatives

Chairman of President & CEO, Supervisory Board Board of Directors

KANNO Yukio YAMAZAKI Shuji For ZEN-NOH to Continue Boldly Taking on Challenges Even in Five and Ten Years From Now

Unite, Our Challenge, Our Future TOP MESSAGE

We wish to oer our sincerest thanks for the decrease and aging of producers, ZEN-NOH is working to strengthen energy infrastructure. bring in human resources from other industries and to tremendous cooperation and support that the ZEN-NOH train agricultural workers, introduce agricultural ICT The fifth top-priority measure is the strengthening of implement human resource matching with local residents Group enjoys in its businesses. systems, develop necessary infrastructure, and reduce support for local JAs. ZEN-NOH has launched eorts to as well as accelerating the spread of smart agriculture. the cost of production materials. work with JAs to consider visions for JA economic Meanwhile, forms of consumption are also changing The source of action for the JA Group, which stands The second top-priority measure is to secure our business activities that are aligned with local conditions constantly. The demand for the online home delivery for the spirit of mutual aid, is “One for All, All for One,” the position as a leading brand for food products. ZEN-NOH is and assist with the development of systems that meet service via e-commerce is forecast to rise dramatically words of Germany’s Friedrich Wilhelm Raieisen (1818 – working on market-focused product development in the diverse needs of producers. and become stabilized afterwards. 1888), who can be described as the father of cooperatives. collaboration with manufacturers and customers by Furthermore, Japan’s population is now declining and Each of Japan’s regions have unique agricultural and strengthening merchandising functions, promotion of In the fiscal year 2019, ZEN-NOH steadily implemented people’s lifestyles and workstyles, and consumption, livestock products as well as colors of the four seasons, contract farming, direct sales to consumers, and these measures in cooperation with producers, distribution, sites of agricultural production, and rural forming a traditional culture which features local cuisines enhancement of sales capabilities utilizing diverse government, and business partners. In the fiscal year areas are also changing at a speed that has never been and festivals that are rooted in the climate. We believe it is channels such as JA Town. 2020, the second year of the plan, we have been experienced before. The JA Group must address these the role of the JA Group to pass on this starting point for The third top-priority measure is to build strategies for deepening these measures further and continuing to work issues in a broad collaboration with various companies Japan and the Japanese identity to the future. To fulfill this developing overseas markets . In order to expand exports on them for ZEN-NOH to keep taking on challenges even and groups rather than by ourselves alone and will role, we believe that the cooperative spirit of mutual aid of domestic agricultural and livestock products, ZEN-NOH five and ten years from now. actively promote alliances going forward. should be reevaluated. is developing dedicated export production areas and opening sales sites in priority countries and regions. The unprecedented phenomenon of the COVID-19 has Agriculture in Japan has incredible foundations due to The fiscal year 2020 is the second year of ZEN-NOH’s ZEN-NOH is also working to strengthen procurement had a major global impact. Faced with this ongoing the eorts of our predecessors. We will protect the things three-year Medium-Term Plan. Based on the catchphrase capabilities for production materials and raw materials situation, a variety of changes have taken place in food we need to keep while making change where needed “Unite, Our Challenge, Our Future,” we are continuing to such as fertilizers and feed grains, for which Japan and agricultural settings. Even under these conditions, anticipating the changes in the times in order to pass accelerate autonomous reform initiatives as well as boldly depends on overseas suppliers. ZEN-NOH has been fulfilling the responsibility to deliver Japanese agriculture on to the next generation. taking on the challenges of new business domains. The fourth top-priority measure is the support for safe and reliable food to the public using the groupwide This three-year Medium-Term Plan has set out five building healthy local communities . Agriculture can only supply chains built to date. In addition, labor shortages in We will appreciate your cooperation and top-priority measures. develop if the infrastructure of local communities is production have become even more serious due to such understanding with regard to the operations of the The first top-priority measure is the establishment of maintained and so ZEN-NOH is working to expand stores factors as restrictions on foreign human resources ZEN-NOH Group in the future. production infrastructure . To address the trend of such as A-Coop and JA-SS and to maintain and entering Japan. To address this, ZEN-NOH is working to

4 ZEN-NOH REPORT 5 JA ZEN-NOH ZEN-NOH as a Cooperative

42,000 organizations More than 105 million members*1 in total The Purpose of a Cooperative Forestry cooperatives 621 ZEN-NOH About

～One for All, All for One.～ Zenrosai 58 A cooperative is an organization for individuals and One for All, All for One Medical welfare small- and medium-sized business operators, who cooperatives 105 are in a weak economic position alone, to join together Agricultural cooperatives*3 1,224 The JA (Japan Agricultural Cooperatives) Group is a coopera- and help each other in the spirit of “mutual aid” while Consumer Credit unions 261 cooperatives 813 achieving common objectives. Credit tive organization formed with the objectives of protecting and en- cooperatives 146 In Japan, cooperatives have been formed in a broad Business cooperatives*2 28,427 environment Our hancing the farming operations and lifestyles of producers (mem- Agricultural and Livestock Products Sale Business range of sectors spanning primary through tertiary Labor banks 13 Fisheries cooperatives1,798 industry. Such Japanese cooperatives include Japan bers) to build an affluent society. ZEN-NOH is the unit within the JA Workers’ coops 357 Agricultural Cooperatives (JA), Japanese Consumers’ *1: Multiple members are recorded in duplicate. *2: Business cooperatives are organized by small and medium-sized Group responsible for economic business, which includes the Co-operative Union (Co-op), and small and medi- enterprises (SMEs). A requirement for organizing a business cooperative is that at least four businesses (corporations or owner-operator businesses) participate. They are intended to facilitate more e­cient management and improve trading um-sized enterprise cooperatives. conditions for SMEs. *3: Agricultural cooperatives include JA, which is a general agricultural cooperative, and specialized sale of agricultural and livestock products and the supply of ma- agricultural cooperatives such as dairy cooperatives. Source: Cooperative Statistics Table, Fiscal 2017 Edition, Kokumin Kyosai website, Japanese Health and Welfare Co-oper- ative Federation website terials for use in agricultural production. Connecting producers Individual regions' turnover and shares of total turnover and consumers through its economic business, ZEN-NOH strives Demonstrating Considerable Power in

Canada

the International Community As Well initiativesOur to vitalize agricultural areas and local communities and to pre- Asia 1.7% Europe (not including Japan) JPY4.7 trillion There are cooperatives in all sectors in countries all over the 2.7% serve the environment. JPY7.7 trillion Production Materials Sale Business world, and the combined total turnover of the cooperatives which 56.3% United States JPY160.6 Japan belong to the International Co-operative Alliance (ICA), an inter- trillion 10.0% 25.3% national federation of cooperatives, is more than 285 trillion yen. JPY28.6 trillion JPY72.1 trillion

Amid serious international disparities, the United Nations has Oceania Total turnover South Africa set the achievement of sustainable local communities as an im- 1.8% * 1.9% JPY5.1 trillion JPY285 JPY5.3 trillion portant issue and recommends the spread and expansion of co- trillion

operatives, including designating 2012 as the International Year Source: The World Co-operative Monitor 2015 (ICA),

Cooperatives and Employment: a Global Report (CICOPA) businesses Our of Cooperatives, based on the expectation that cooperatives will * Total turnover of cooperatives with turnover of USD100 million or more. The total of play a role in improving such disparities. individual figures may not match total turnover. Partnering with Leading Agricultural Cooperatives around the World Lifestyle-Related Business …Agricultural cooperative ZEN-NOH partners with leading agricultural coop- …Joint venture eratives around the world in order to procure global Rabobank resources. To engage in stable transactions over the (Cooperative bank in the Netherlands, holding partnership CZL long term, we are strengthening ties by concluding INVIVO with Norinchukin Bank) (Joint venture with CHS) (France’s largest CHS agreements and establishing joint ventures through activities PR/SR agricultural cooperative) reciprocal investments. T.J.C. Chemical ZEN-NOH ACA Limited (Joint venture with ACA) COAMO Co-op Thailand (Brazil’s largest agricultural cooperative)

CBH

ACA Overseas Business

Australia U.S. Argentina

CBH CHS ACA organization Our Cooperative Cooperative Cooperative The agricultural cooperative in The largest federation of Asociacion de Cooperativas Argentinas Western Australia, Australia’s agricultural cooperatives in C. L., the largest association of largest cooperative cooperatives in South America Simon Stead, Chairman North America Jay Debertin, President and CEO Claudio Soumoulou, Chairman

CBH and ZEN-NOH have been trading CHS and ZEN-NOH established the joint ACA and ZEN-NOH established joint venture com- feed raw materials since 1971. venture company CZL Ltd., which is involved pany ZEN-NOH ACA Limited in 2011 and are coop- in wheat trading, in 2012. erating on sale of soybeans to China.

6 ZEN-NOH REPORT 7 Overseas subsidiaries, etc. Export business Fertilizer, agrochemicals business Feed business ZEN-NOH's overseas o‘ces ZEN-NOH America Wengfu & Zijin Chemical ZEN-NOH ACA Limited 1 7 SFG Holdings Limited 13 18 22 ZEN-NOH London O‘ce Corporation (ZNA) Industry Co., Ltd. (ZAC) ●Established in 1978 (reorganized in ●Acquired in 2016 (U.K.) ●Invested in 2012 (China) ●Established in 2011 (Hong Kong) ●Established in 2014 (reorganized in 2015) 1982) ●Support for trading partners ●Food importer and wholesaler ●Manufacture of fertilizer materials ●Joint venture with ACA ●Expanding exports of domestical- for meat ●International trading in ●Marketing of grains and oil seeds to ly-produced agriculture and livestock International Network fertilizer materials, etc., business de- Asia products , information collection, at- velopment of and business support tendant services for trading partners for meat, etc. JA ZEN-NOH International ZEN-NOH Foods ZEN-NOH Grain ZEN-NOH Grain Brazil 2 8 14 19 23 ZEN-NOH Beijing O‘ce ZEN-NOH strives to expand exports of domestically-produced ag- Chemical Industry Co., Ltd., in a partnership with Guizhou Kailin Hold- Europe Limited (ZIE) Europe Co., Ltd. Corporation (ZGC) Holdings Ltda(ZGB) ●Established in 2015 (U.K.) ●Established in 2017 (Bulgaria) ●Established in 1979 (U.S.) ●Established in 2015 ●Established in 1980 (reorganized in 2010) riculture and livestock products and secure stable supplies of feed ing(Group) Co., Ltd., a leading company producing phosphates in Chi- ●Export/import of wheat variety, feed ●Production and sales of frozen ●Export and sales of grain, informa- ●Information gathering and man- ●Support for exports of domestic ZEN-NOH About materials, agricultural and livestock cooked rice (e.g., frozen sushi) using tion gathering agement of investment agricultural products, assisting in and fertilizer materials through our international network. na, to realize stable supplies and increase handling of high-quality products, etc. rice produced in Japan transfer of fertilizer materials, etc., information collection, attendant ser- In 2018, new overseas facilities were established in Hong Kong ammonium phosphate. vices and Taiwan, followed by Shanghai in 2020, joining existing facilities in In the feed business, we leverage ZEN-NOH Grain Corporation and JA ZEN-NOH International Amaggi Louis Dreyfus 3 9 P&Z FINE FOODS LLC 15 CGB Enterprises 20 24 ZEN-NOH Singapore O‘ce the U.S., the U.K., and Singapore. We also are striving to expand ex- CGB to strengthen the origination mostly throughout the Midwestern Asia Pte. Limited (ZIA) (CGB) ZEN-NOH Holdings S.A.(ALZ) ●Established in 2015 (Singapore) ●Established in 2017 (U.S.) ●Acquired in 1988 (U.S.) ●Invested in 2017 (Brazil) ●Established in 2013 (reorga- ports of domestically-produced agriculture and livestock products United States. We affiliate with agricultural cooperative organizations ●Export/import of rice and wheat ●Import, storage, processing, and ●Grain origination, storage, and mar- ●Origination, storage and export nized in 2015) variety, feed materials, agricultural sales of livestock products, etc. keting of grains ●Transfer of fertilizer materials, through measures such as acquisition of wholesaler companies. of various countries such as ACA in Argentina and CBH in Australia. and livestock products, etc. juices, etc., export support, informa- In the fertilizer businesses, we are strengthening ties with over- We are also currently involved in partnership in both Canada and Bra- tion collection, attendant services seas suppliers of raw materials, and we invested in Wengfu & Zijin zil to provide access to these production areas. ZEN-NOH International ZEN-NOH Green ZEN-NOH Hay Inc. GrainsConnect Canada 4 10 16 21 25 ZEN-NOH Hong Kong O‘ce environment Our Hong Kong Limited Resources Thailand Co., Ltd. (ZHI) Operations Inc.(GCC) ●Established in 2018 ●Established in 1964 (reorganized in ●Established in 1994(U.S.) ●Established in 2015 ●Established in 2018 7 SFG Holdings Limited 8 ZEN-NOH Foods 9 P&Z FINE FOODS LLC ●Import of agricultural and livestock 1977 and 1993) ●Manufacture and export of forage ●Origination, storage and export of ●Support for exports of domestical- Europe Co., Ltd. products, etc. ●Export/import of agrochemicals, grain ly-produced agriculture and livestock SFG is a wholesaler of food products P&Z FINE FOODS LCC is a joint chemical products, food products products, information collection, at- tendant services jointly acquired in 2016 by ZEN-NOH Interna- ZEN-NOH Foods Europe venture established in 2017 by ZEN- tional Europe Limited and Norinchukin Bank. Co., Ltd. is a joint venture es- NOH America Corporation (ZNA) and (ZIE holds a 90% stake, while Norinchukin Taiwan ZEN-NOH International ZEN-NOH Grain Corporation, tablished in 2017 by ZEN- local wholesalers. It is increasing 5 11 T.J.C. Chemical Co., Ltd. 17 26 ZEN-NOH Taiwan O‘ce Bank holds 10%) The customer base in- NOH Foods Co., Ltd. and sales of wagyu beef imported from Corporation (Taiwan) Portland Division cludes about 2,000 restaurants and whole- partners including Bulgari- Japan through e-commerce, large ●Established in 2018 ●Established in 1970 (Thailand) ●Established in 2005 (U.S.) ●Established in 2018 sale companies in the U.K. and elsewhere. an food-product wholesal- retail stores, and restaurants, by pro- ●Import of agricultural and livestock ●Manufacture and sale of agrochem- ●Export of grain and forage ●Support for exports of domestically-pro- ers. It produces and sells products, etc. icals duced agriculture and livestock products, cessing it to meet customer needs information collection, attendant services frozen sushi using rice pro- (e.g., steak cuts, thin slices). duced in Japan.

ZEN-NOH ZEN-NOH Green Resources initiativesOur 6 12 21 GrainsConnect Canada SHANGHAI CO., LTD. Corporation (ZGR) Shanghai Liaison O‘ce ●Established in 2020 ●Established in 1991 (reorganized in 2005) Operations Inc. ●Import of agricultural and livestock ●Information collection, attendant products, etc services, assistance with purchas- In 2015, GrainsConnect Canada Finland ●Trading in fertilizer materials, etc. ing of fertilizer materials and pro- Operations Inc. (GCC), a grain origina- Chemical fertilizer duction materials tion and export company, was estab- 15 CGB Enterprises, Inc. lished as joint venture with Grain- Canada Wheat Barley Alfalfa Pasture grass Rapeseed, etc. Corp, an Australian grain company. Scotland Russia CGB is a company acquired in Four newly built grain elevators Glasgow Latvia Potassium chloride Peat moss 7 Netherlands Peat moss Potassium chloride 1988 to strengthen grain supply located in the Western Canada are chain in the Midwest in the U.S. The designed to establish a stable supply U.K. Liquid fertilizer Calgary majority of the grain that the compa- London 2 21 chain of grains such as wheat and 22 ny originates is sold to ZGC for export. barley. Germany businesses Our Gasoline CGB currently operates approximate- France Potassium sulfate Europe, Black Sea coast Fuel oil ly 100 inland grain elevators with INVIVO Pasco New York storage capacity of 6.5 million MT, the Corn Wheat Barley China Light oil Portland 16 U.S. Bulgaria 8 Soybean cake, etc. Beijing 5th largest in the U.S. Plovdiv Beets Alfalfa, etc. Heavy oil A 17 U.S. Corn Soy Wheat Barley 1 Ammonium phosphate 23 CHS Cooperative Pasture grass Beets Milo DDGS, etc. Rock phosphate S. Korea 5 Taiwan ZEN-NOH Rock phosphate Ammonium phosphate Potassium-magnesium-sulphate Morocco Jordan Magnesium phosphate 6 International Corporation Los Angeles 9 Shanghai 12 14 Ammonium phosphate Liquid fertilizer 26 ZEN-NOH Taiwan O›ce 15 Rock phosphate India Shanghang 13 New Orleans UAE 5 26 Taiwan Taiwan ZEN-NOH Inter- Saudi Arabia Soybean cake Hong Kong Taipei LP gas 18 4 25 national Corporation and ZEN- LP gas Castor bean cake Potassium sulfate NOH Taiwan Office were -es 20 Amaggi Louis Dreyfus 10 11 Vietnam Rock phosphate tablished in 2018 as sites for ZEN-NOH Holdings S.A. activities PR/SR Bangkok promoting sales in order to Thailand export Japanese agricultural Amaggi Louis Dreyfus ZEN-NOH Singapore and livestock products to Tai- 14 ZEN-NOH Grain Corporation Holdings S.A. (ALZ) is a joint venture wan. In 2019, we opened the 3 24 which originates and export grain. directly operated shop “JAJA” ZGC was established in 1979 in 13 Wengfu & Zijin Chemical Urea ZGB, a subsidiary of ZGC obtained the Malaysia under the theme “directly ex- New Orleans, Louisiana, in the U.S. its Industry Co., Ltd. stake of the joint venture in July, 2017. ported and sold by the ZEN- annual export capacity is approxi- 20 mately 18million MT, the biggest ele- Brazil We established our new supply chain Wengfu & Zijin is a large-scale phos- NOH Group.” Corn Soy, etc. vator in the world. in Brazil which increases the produc- phate facility built in Fujian Province, China, tion of both corn and soybean to be- by Wengfu Group, a major Chinese rock Its function is logistics, storage and export of grains purchased from Brazil come one of the major exporters of phosphate supplier. ZEN-NOH has main- COAMO Cooperative grain. tained friendly ties with Wengfu Group over a producers in the U.S. as well as infor- Australia mation gathering to secure stable long period of time through trading in rock Australia 19 São Paulo organization Our phosphate. It has financed and participated CBH Cooperative Wheat Barley supply grain like corn for compound in this project from the planning stage, and at Milo Oats feed. present it enjoys a stable supply of ammoni- Pasture grass, etc. South Africa GrainCorp Corn um phosphate and phosphoric acid solution. Argentina Rock phosphate Milo Corn Barley, etc. Argentina ACA Cooperative ■Production centers for fertilizers, feeds, and fuel products Fertilizers Feed Fuels

8 ZEN-NOH REPORT 9 (Persons) (Million persons) 50 or older 80,000 Percentage of the population 4 3.84 49 or younger aged 65 or over, by prefecture (as of 2018) 51.3% 30.0% or higher 65 or older 60,000 At least 27.5%, 3 (Persons) (Million persons) 50 or older but less than 30.0% 1.97 Under 65 80,000 49 or younger PercentageAt leastof the 25.0%, population 4 3.84 42,000 aged 65 butor over, less by than prefecture 27.5% 70.2% 38,100 (as of Enhancing2018) Production2 Efficiency40,000 to35,790 Compensate Less than 25.0% 51.3% 36,520 30.0% or higher 65 or older1.68 60,000 34,910 At least 27.5%, 3 Under 65 ZEN-NOH in Numbers but less than 30.0% 1.97 Atfor least 25.0%, a Shrinking1 Production1.18 Infrastructure20,000 42,000 but less than 27.5% 1.87 70.2% (Persons) 38,100 2(Million persons) (Persons)40,000 35,790 Less than 25.0% (Million persons) 1.68 5050 or orolder older 23,03034,910 36,520 80,00080,000 21,860 22,050 20,760 19,290 Percentage of the population 3.84 49 or younger PercentageWhile of the population the shrinking and aging of Japan’s4 3.84 agricultural workforce has accelerated, the number49 or younger of new farmers has remained steady at aged 65 or over, by prefecture 4 0.5 aged 65 or over, by prefecture 0 (as of 2018) ZEN-NOH About Compound feed shipment volume (Domestic industry No. 1) (as of 2018)around 56,000 new farmers joining the agricultural workforce1.18 each year. 0 Founding year 151.3% 1.87 1999 2019 (Year)20,000 2014 2015 2016 2017 2018 (Year) 1972 30.0%30.0% or higheror higher 51.3% 65 or older 60,000 (Persons) At least 27.5%, 3 (Million persons) 65 or older 60,000 23,030 At leastRapid 27.5%, Aging of the Population in Non-metropolitan Regions3 A Shrinking, Aging Agricultural Workforce Change21,860 in the Number of22,050 New50 Farmersor older20,760 (by age19,290 group) but less than 30.0% 1.97 UnderUnder 65 65 80,000 but less than 30.0% 1.97 0.5 (Persons)(Persons) 49 or younger At leastPercentage 25.0%, of the population (Million(Million4 persons) persons) 3.84 50 or older 1 At least 25.0%, 0 With the number of farmers 0 50 or42,000 older Number of ZEN-NOH employees* working at 905 sites but agedless than 65 or27.5% over, by prefecture having70.2% fallen by half in the 80,00080,000 42,000 The number of young new farmers joining but less than 27.5%Percentage of the population 19994 3.84201970.2%(Year) 2014 4949 or2015 oryounger younger201638,100 2017 2018 (Year) *1: As of March 31, 2020, including employees and employees on (as of 2018)Percentage of the population 2 4 3.84 last 20 years, the agricultural40,00040,000 35,790 38,100the profession each year has remained 7,987 secondment at overseas sites. Less than 25.0%agedaged 65 65 or or over, over, by by prefecture prefecture 2 workforce is aging 35,790 34,910 36,52036,520 Less than 25.0%30.0%(as of or 2018) higher 51.3% 1.681.68 steady at34,910 around 20,000 per year (as of 2018) 51.3% 65 or older 60,000 At least30.0% 27.5%, or higher 51.3%3 30.0% or higher 6565 or or older older 60,00060,000 but lessAtAt thanleast least 27.5%,30.0% 27.5%, 33 1.97 Under 65 but less than 30.0% 1 1.97 1.18 UnderUnder 65 65 20,000 Number of ZEN-NOH Group employees 6.91 At leastbut 25.0%, less than 30.0% 1 1.87 1.971.18 20,000 At least 25.0%, 1.87 42,000 27,563 7 feed subsidiaries, including JA NISHINIHON but lessAt thanleast 25.0%,27.5% 70.2% 23,03042,00042,000 Main butbut less less than than 27.5% 27.5% 70.2%70.2% 21,86021,860 23,030 22,05022,05038,100 20,760 19,29038,100 million KUMIAI SHIRYOU Corporation materials 222 40,00040,000 35,79040,000 35,79038,100 20,760 19,29036,520 35,790 environment Our 36,520 Less thanLessLess 25.0%than than 25.0% 25.0% 0.50.51.681.681.68 34,91034,910 36,520 34,910 0 0 0 Number of subsidiaries (in addition to an- tons 0 19991999 20192019(Year)(Year) 20142014 20152015 20162016 20172017 20182018(Year)(Year) 136 other 144 affiliated companies) 1 1.181.18 20,000 1 1 1.871.87 1.18 20,000 20,000 1.87 23,030 21,86021,860 23,030 22,05022,050 20,76020,760 19,29019,290 (10,000 ha) Area of cultivated land (10,000 ha) 0.50.5 Less than21,860 1 ha 123,030 – 5 ha 22,050More than 20,7605 ha 19,290 0 Area of abandoned cultivated land Area of cultivated land 0 Number of overseas sites 600 Area of abandoned cultivated land 50 0.5 (Year)0 0 25 0 19991999 20192019(Year)(Year) 20142014 20152015 20162016 20172017 20182018(Year)(Year) (10,000 ha) Source:Area Based of oncultivated Cabinet Office, land Source: Based(10,000 on Ministry ha) of Agriculture, Forestry and Fisheries, Less than 1 Source:ha 0 Ministry1 – 5 ha of Agriculture,More Forestrythan 5 haand Fisheries,

"Annual Report on the Ageing Society: 2018" "SurveyArea of abandoned cultivated land on Movement of Agricultural Structure" “Survey on Newcomers in Agriculture” Area of cultivated land 600 Area of abandoned cultivated land 199940 2019(Year) (Year)1995 2014 2015 2016 2017 2018 (Year) ZEN-NOH Grain Corporation (Louisiana, United States) 50 21.4 44.4 34.2 World No. 1 in annual shipping volume While the400 total area of land under cultivation has fallen due to an increase in the amount of abandoned cultivated land, the average area 762 full members, 161 associate members 40 30 1995 923 of cultivated land per farm has increased. 21.4 44.4 34.2 400 30 20 initiativesOur Transaction volume of major fertilizer brands (Domestic industry No. 1) Change200 in the Area of Cultivated Land and Abandoned Cultivated Land Cultivated Land Area by Farm Size FY2019 turnover (non-consolidated) 20 2015 11.9 30.2 57.9 No. 1*2 among global cooperatives (agricul- 200 10 2.43 Chemical fertilizers 465 (10,000(10,000 ha) ha) AreaArea of cultivatedof cultivated land land (10,000(10,000 ha) ha) 2015 11.9LessLess than30.2 than 1 ha 1 ha 1 –1 5 – ha 5 ha57.9MoreMore than than 5 ha 5 ha

tural and food industry cooperatives) 10 Area of abandoned cultivated land Area of cultivated land

Area of abandoned cultivated land (Year) Area of cultivated land Area of abandoned cultivated land NPK straight fertilizers 6000 Area of abandoned cultivated land 50 0 (Year) 1. JA ZEN-NOH (Japan) JPY4.6 trillion million 203 600 1985 1990 1995 2000 2005 2010502015 0％ 50％ 100％ 0 0 (Year) 1.2. JANational ZEN-NOH Agricultural (Japan) Co-operative Federation JPY4.3JPY4.6 trillion trillion Organic fertilizers 147 1985 1990 1995 2000 2005 2010 2015 40 19950％21.4 44.450％ 34.2100％ JPY4.5 (NACF) (South Korea) tons Unit: (10,000(10,000 ha) ha) AreaArea of of cultivated cultivated land land (Year)40 (10,000(10,000 ha) ha) 1995 21.4 LessLess than than44.4 1 ha 1 ha 1 –1 5 – ha 5 ha More34.2More than than 5 ha 5 ha

National Agricultural Co-operative Federation Area of abandoned cultivated land

1,000 Area of abandoned cultivated land Area of cultivated land 2.3. CHS (United States) JPY3.6JPY4.3 trillion trillion 400 Area of cultivated land (Year) (NACF) (South Korea) 0 100 200 300 400 500 tons 400 600600 AreaArea of of abandoned abandoned cultivated cultivated land land 5050 (Year) 3030 Concentration of farm trillion 3. CHS (United States) JPY3.6 trillion 4. BayWa AG (Germany) JPY2.0 trillion holdings 20 4040 1995199521.421.4 44.444.4 34.234.2 5.4. DairyBayWa Farmers AG (Germany)of America (United States) JPY1.6JPY2.0 trillion trillion Abandoned cultivated land 20 200(10,000 ha)400400 (10,000 ha) 2015 Less than 1 ha 1 – 5 ha More than 5 ha *2: Comparison of FY2017 turnover prepared based on The World 3 200 has increased,Area of cultivated while total land 30 11.9 30.2 57.9 businesses Our 5. Dairy Farmers of America (United States) JPY1.6 trillion Number of A-Coop stores nationwide* 30 2015 11.9 30.2 57.9 10 Area of abandoned cultivated land Co-operative Monitor 2019 (ICA) (calculated using exchange rate of Area of cultivated land cultivated land has fallen 10 (Year) JPY111:USD1). Figure for National Agricultural Co-operative Fed- 600 Area of abandoned cultivated land 50 eration (South Korea) includes data for group companies involved 2020 in finance and insurance. 0 200200 0 0 1985 1990 1995 2000 2005 2010 20150 201520150％ 11.911.9 30.230.2 50％ 57.957.9 100％ 1985 1990 1995 2000 2005 2010 2015 (Year)(Year) 1010 40 0％ 1995 5021.4％ 44.4100％ 34.2 FY20190.8 1.2turnover0.9 (consolidated)2.1 1.0 Source: Based on Ministry of Agriculture, Forestry and Fisheries, Source: Based on Ministry of Agriculture, Forestry and Fisheries, JPY6.0 ■ Rice and farm produce ■ Fruit and vegetables “Cultivated and 400Planted Land Statistics" and "Census of Agriculture and Forestry" “Cultivated and Planted Land Statistics" and "Census of Agriculture and Forestry" Farming0.8 and 1.2production materials0.9 Livestock 2.1 Lifestyle-related 1.0 00 00 ■ ■ ■ 1985 1990 1995 2000 2005 2010 2015 30 0％ 50％ 100％ ■ Rice and farm produce ■ Fruit and vegetables 1985 1990 1995 2000 2005 2010 2015(Year)(Year) 0％ 50％ 100％ trillion ■ Farming and production materials ■ Livestock ■ Lifestyle-related As strategies to maintain the production infrastructure, it is anticipated that agricultural production sites will need greater concentration 200 200 200 542 20 of farm ownership200 and the development of “smart agriculture,” etc. ■ 化成肥料 200 ■ BB肥料 ■ 有機肥料200 200 2015 11.9 30.2 57.9 10 Combined■ 化成肥料 ■ BB 肥料 net ■sales 有機肥料 of six main food Breakdown of Agricultural Management Entities by Type (left) Scale of the “Smart Agriculture” Market in Japan – Trends and Forecasts This market sector is

sales subsidiaries (FY2019) and Share of Sales0 Held (right) 0 growing steadily activities PR/SR 1985 1990 1995 2000 2005 2010 2015 (Year) Agricultural robots 0％ 50％ 100％ With 25% of agricultural management entities accounting for (Million Yen) Cultivation supportAgricultural solutions robots 44,279 *3: Number of stores of companies belonging to A-COOP 86% of total agricultural sector sales in Japan, the trend towards (MillionPrecision Yen) agricultureCultivation support solutions 44,279 JPY20.5 billion concentrationFarmers for whom of farm ownership is continuing. 40,000 39,780 ZEN-NOH Foods Co., Ltd. farming is their 40,000Management supportPrecision solutions agriculture 35,553 39,780 Organized farm primaryFarmers occupation for whom 86％ Sales support solutionsManagement support solutions management entities 12%farming is their 30,348 35,553 JPY118.5 billion 4 Organized13% farm primary occupation 86％ 30,000 Agricultural droneSales solutions support solutions Number of JA-SS sites nationwide* management entities 12% ZEN-NOH Pearl Rice Co., Ltd. (Domestic industry No. 2) Organized farm 30,348 13% management 30,000 Agricultural24,164 drone solutions Farmers producing 25％ entitiesOrganized farm primarily for their own 30% 20,000 18,110 24,164 JPY700 JPY148.2 billion consumption management Agricultural robots Farmers producing 25 Farmers for whom entities Agricultural15,874 robots primarily33% for their own ％ 14,121 Agricultural robots ZEN-NOH Fresh Produce Marketing Corporation (Domestic industry No. 2) farming is their 30% (Million(Million Yen) Yen)20,000CultivationCultivation supportAgricultural support solutions solutionsrobots 18,110 44,279 consumption primary occupation (Million Yen) Cultivation support solutions 44,27944,279 billion Farmers for whom (Million Yen)PrecisionCultivation agriculture15,874 support solutions

44,279 organization Our Farmers33% for whom Farmers for whom 56% 10,00040,000 Precision14,121 agriculture 39,780 JPY253.6 billion Farmers Farmersfor whom for whom farming is their 40,000 40,000 Precision agriculture 39,78039,780 farming is a secondaryfarming is their Farmers for whom 40,000ManagementManagementPrecision support support agriculture solutions solutions 35,553 39,780 occupation farming isfarming their is theirfarmingFarmers is for their whom primary occupation86 Management support solutions 35,553 Organized farm primaryquasi-primary occupation occupation 86 ％ Sales supportManagement solutions support solutions 35,553 JA ZEN-NOH MEAT FOODS CO., LTD. (Domestic industry No. 2) OrganizedmanagementFarmers farm31% entities forprimary whomOrganized occupation 12% farm primaryfarming occupation is their 56% ％ 86％ 10,000Sales supportSales supportsolutions solutions 35,553 management entities Organized12% farm11% primary12% occupation 86％ 30,348 2,444 farming13% is a secondarymanagement entitiesFarmers for whom 30,0000 AgriculturalSales drone support solutions solutions 30,34830,348 13% management13% entitiesfarming is 12%their 30,000 30,000 AgriculturalAgricultural drone solutions drone solutions 30,348 occupation 13% Organized farm 30,0002018 2019Agricultural2020 drone20 solutions21 2022 2023 2024 2025 (FY) JPY91.8 billion quasi-primary occupation Organized farm Organized farm 24,164 31% managementmanagementOrganized farm (Estimate) (Forecast) 24,164(Forecast)24,164(Forecast) (Forecast) (Forecast) (Forecast) Farmers producing Farmers producing 11% managemententities 24,164 ZENNOH CHICKEN FOODS CORPORATION (Domestic industry No. 1) Farmers producing 25％ 25％ entities managemententities 0 Source: Based on Yano Research Institute Ltd., primarily for their ownprimarily Farmers for producing Source:their25 own％ Based on Ministry25 of Agriculture,30% Forestry and30%entities Fisheries, 20,000 primarilyconsumption for their own primarilyconsumption for their own ％ 30% 20,000 20,000 20"Smart1818,110 Agriculture18,1102019 Market2020 2019" (report2021 issued2 0on22 December2023 12, 2019)2024 2025 (FY) consumption“Census of Agriculture and Forestry” and “Statistical Survey of Agricultural Management”30% 20,000 15,87415,87418,110 18,110 33% consumption33% Farmers for whomFarmers for whom 14,12114,12115,874 15,874(Estimate) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) JPY86.6 billion 33% 33% Farmersfarming for whom is their farmingFarmers is for their whom 14,121 14,121 farmingprimary is occupationtheir primaryfarming occupation is their Farmers for whom primary occupation primary56% occupation 10,000 JA.Z-TAMAGO CO., LTD. (Domestic industry No. 1) Farmers for whom Farmers for whom56% 10,000 Farmersfarming for is awhom secondary farming FarmersFarmers is a secondaryfor whom for whom 56% 56% 10,000 10,000 *4: Includes service stations that do not carry the JA-SS logo. farming is a secondary farmingFarmersoccupation is a forsecondary whom farmingFarmers is for their whom Agricultural robots Besidesoccupation effortsfarming isto theirquasi-primary ensurefarming occupationis their that there are enoughfarmers, there is also a need for the further occupation quasi-primaryfarmingoccupation31% is their occupation 31% quasi-primary31% occupationquasi-primary11% occupation (Million Yen) Cultivation support solutions 44,279 31% transformation11% 11% of production to make it more0 efficient and more intensive. 11% 0 0 0 2018 2019 2020Precision2021 agriculture2022 2023 2024 2025 (FY) 39,780 Farmers for whom 2021081840,00022002110981(Estimate)9 220022010920(Forecast)2200202210(Forecast)21220021222(Forecast)0222022202(Forecast)23023202320(Forecast)22402240242(Forecast)02250225025 (FY)(FY) (Estimate) (Forecast)Management(Forecast) support(Forecast) solutions(Forecast) (Forecast) (Forecast)(FY) 10 farming is their (Estimate)(Estimate)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)ZEN-NOH(Forecast)(Forecast)(Forecast)(Forecast) REPORT(Forecast)(Forecast)35,55311 Organized farm primary occupation 86％ Sales support solutions management entities 12% 30,348 13% 30,000 Agricultural drone solutions Organized farm management 24,164 Farmers producing 25％ entities primarily for their own 30% consumption 20,000 18,110 33% Farmers for whom 15,874 farming is their 14,121 primary occupation Farmers for whom 56% 10,000 farming is a secondary Farmers for whom occupation farming is their 31% quasi-primary occupation 11% 0 2018 2019 2020 2021 2022 2023 2024 2025 (FY) (Estimate) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) (Million persons) Other Couples with children (Million persons)

60 80 Female share of all employed persons Couples without children Number of employed persons Singles 45％ 9.53 60 40 Female employed persons 14.13 Female share of 40％ 9.18 40 all employees 11.1 20 15.08 20 Male employed persons Population35％ of Japan 4.46 19.34 Fisheries products 7.11 2015 2030 Forestry products JPY906.8 JPY912.1 Produce billion billion 0 million million JPY807.1 (Year) 1975 1980 1985 1990 1995 2000 2005 2010 2015 (Year)people*1 people*2 1980 2020 127 119 JPY745.1 JPY750.2 billion (Forecast) billion billion 303.1 287.3 Global population JPY611.7 274.9 JPY550.5 billion 2015 2030 billion 275.7 264.0 37.6 37 billion billion JPY449.7 35.5 people*3 people*3 233.7 7.38 Expansion8.55 of thebillion Global26.3 26.8 Market Other 221.6 (Million persons) Other 21.1 (Million persons)Couples with children (Million persons) Size of the Global Market for Food 169.8 60The ChangingCouples with children Face (Millionof persons) ConsumptionFemale share of all employed persons 15.2 80 Couples without children Number of employed persons 587.8 60 80 45 Female share of all employed persons and Beverage Products (Major Economies Only) 11.8 566.1 Couples without children Number of employed persons ％ for Food and Agricultural Products 496.6 Singles 45％ 443.1 459.3 Singles 9.53 356.9 9.53 60 268 313.6 Female60 employed persons 2015 2030 40 Female employed persons While Japan’s population is forecast to continue declining, It can be anticipated that generating new demand through exports 40 14.13 trillion trillion Population of Japan ZEN-NOH About The growth in the number of small households14.13 has been accompanied by an increase in women’s participationFemale share inof the workforce.40％ 890 yen*4 with the1,360 world’s populationyen*4 continuing to increase, the global of Japanese agricultural and livestock products will contribute towards Fisheries products 9.18 40 all employeesFemale share of 40％ 40 all employees food market is expected to grow. 2012 201strengthening3 2014 2 the015 domestic2016 production2017 2infrastructure018 2019 in Japan. Forestry products JPY906.8 JPY912.1 9.18 2015 2030 (Year) billion billion 11.1 million million Produce Changing Household Structure Change in the Size of the Workforce by Gender and in Women’s Share of the Workforce 1 2 JPY807.1 20 11.1 127 people* 119 people* billion 15.08 Trends in Exports of Agricultural, Forestry, and Fisheries Products and Food Products JPY745.1 JPY750.2 20 15.08 20 billion billion (Million persons) Other Male20 employed persons 35％ Population of Japan 303.1 287.3 (Million persons) CouplesOther with children (Million persons) MaleIn June employed 2019, persons the number of female 35％ GlobalFisheries population products JPY611.7 4.46 19.34 Population of Japan 274.9 60 Couples with children (Million80 persons) Female share of all employed persons billion Couples4.46 without children 19.34 Number of employed persons employed persons rose above 30 Fisheries productsForestry products JPY906.8 JPY912.1 JPY550.5 264.0 37 60 80 45％ Female share of all employed persons 2015 2030 billion 275.7 37.6 7.11 Number of employed persons 2015 2030 (JPY trillion) SinglesCouples without children (JPY trillion) million for the first time billion billion 0 7.11 45％ Forestry productsProducebillion JPY906.8billion JPY912.1 JPY449.7 35.5 0 Singles 9.53 25.8 1975 1980 1985 1990 1995 2000 2005 2010 2015 2015 million 2030 million people*3 JPY807.1people* 3 233.7 13 1980 2020 (Year)25.7 26 (Year) 1 2 7.38 8.55billion billion billion 26.3 26.8 1980 25.4 25.420209.53 (Year) 60 1975 1980 1985 1990 1995 2000 2005 2010 2015 (Year) 127million people* 119million people* Produce billion 221.6 (Forecast) Female employed persons (JPY trillion) Of which: food, beverages 1 2 JPY745.1 JPY807.1JPY750.2 40 (Forecast) 60 127 people* 119 people* billion billionbillion 169.8 21.1 14.13 Female employed persons20 19.4 SizeJPY745.1 of the GlobalJPY750.2 Market for Food 303.1 287.3 15.2 12 40 24.6 25 Female shareand of alcoholic40％ drinks 18.0 587.8 Food14.13 service market size Global population and Beveragebillion billion Products (Major Economies Only) 11.8 566.1 all employees 287.3 environment Our 496.6 9.18 40 Female share of 40％ 16.5 JPY611.7 303.1 443.1 459.3 all1.8 employees trillion yen in 2019 Global population 274.9 24.09.18 11.1 40 15.1 JPY611.7JPY550.5 billion 313.6 356.9 11 The number 24 15 13.8 2015 275.7 274.9264.02030 37 268 20 11.1 2015 2030 JPY550.5 billionbillion 37.6 23.215.08 of small10.3 20 12.8 trillion 264.0 trillion37 20 10.1 2015 billion 2030 billion JPY449.7billion 275.74 37.6 4 22.8 15.08 households Male employed persons 35％ 11.2 3 3 890 yen* 1,36035.5yen* 10 9.8 23 20 people* people* billion 233.7 26.8 2012 2013 2014 2015 2016 2017 2018 2019 4.46 9.619.34 Male employed persons 35％ 9.5 7.38billion 8.55billion JPY449.7 26.3 35.5 (Year) 9.3 has grown 10 people*3 people*3 billion 233.7221.6 7.114.46 19.34 7.8 8.5 7.38 8.55 26.3 26.8 0 8.9 6.7 221.6169.8 21.1 9 8.7 7.11 (Year) 22 1975 1980 1985 1990 1995 2000 2005 2010 20156.1 (Year) Size of the Global Market for Food 8.40 1980 2020 5.3 169.8 21.115.2 587.8 (Forecast) 1975 1980 1985 1990 19954.42000 2005 2010 2015 (Year) Size ofand the BeverageGlobal Market Products for Food (Major Economies Only) 11.8 566.1 1980 2020 (Year) 5 15.2 496.6 587.8 8 Source: Based on Ministry of Health, Labour(Forecast) and Welfare, 21 Source: Based on Ministry of Internal Affairs and Communications, and Beverage Products (Major Economies Only) 11.8 443.1 459.3 566.1 Size of the meal-replacement "Comprehensive market Survey of Living Conditions" "Labour Force Survey" 496.6 1.0 1.2 1.3 1.5 1.6 1.7 1.8 313.6 443.1356.9 459.3 2015 2030 268 356.9 7 20 0 313.6 2011 2012 2013 2014 2015 2016 2017 2018 2015 trillion 2030 trillion 268 (Year) 4 4 The home meal replacement and food services market is growing, and the e-commerce market is also2006 continuing2007 2008 2009 to grow.2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(Year) 890trillion yen* 1,360trillion yen* 4 4 *1 Ministry of Internal Affairs and Communications, "Population Estimates" 2012 2013 2014 2015 2016 2017 2018 2019 initiativesOur 890 yen* 1,360 yen* (Year) *2 National Institute of Population and Social Security Research, "Population Projections for 2012 2013 2014 2015 2016 2017 2018 2019 Changes in the Size of the Home Meal Replacement and Food Service Markets Change in the Size of the E-Commerce (B2C) Market Japan" (2017 projections) (Year) *3 United Nations, "World Population Prospects" (2019 Revision) *4 Policy Research Institute, Ministry of Agriculture, Forestry and Fisheries, "Global Food Source: Based on Ministry of Agriculture, Forestry and Fisheries, "Overview of Exports (JPY trillion) (JPY trillion) Market Size Projections" and Imports of Agricultural, Forestry and Fisheries Products" (JPY trillion) 25.8 (JPY trillion) The e-commerce 25.7 26 25.8 13 13 25.4 25.4 25.7 26 market has been 25.4 25.4 (JPY trillion) (JPY trillion)Of which: food, beverages Of which: food, beveragesgrowing 19.4 12 25 20 20 18.0 19.4 12 24.6 24.6Food service market size 25 and alcoholicand drinks alcoholic drinks 18.0 Food service market size 16.5 16.5 Export Barriers Hindering Further Expansion of Exports 24.0 24.0 1.8 trillion1.8 yen trillion in 2019 yen in 2019 15.1 15.1 11 11 24 24 15 15 13.8 13.8 23.2 23.2 10.3 10.3 12.8 12.8 The state of Japan’s export/import trade with other countries and regions varies depending on the trading partner. There are many product items that 22.8 22.8 10.1 10.1 10 9.8 9.8 23 11.2 11.2 (JPY 10trillion) 9.6 9.6 (JPY trillion)23 9.5 can be imported into Japan from a particular trading partner but which cannot be exported from Japan to that trading partner; unfair regulations of this kind 25.8 9.5 9.3 9.3 25.7 26 10 10 8.5 8.5 13 25.4 25.4 7.8 7.8 have hindered the further expansion of exports of Japanese agricultural and livestock products. There is a need for the Japanese government to take action, 8.9 8.9 22 (JPY trillion) 6.7 6.7 9 8.79(JPY trillion) 8.7 The home meal (JPY22 trillion) Of which: food, beverages businesses Our 25.8 20 5.3 6.1 5.3 6.1 19.4 8.4 12 8.413 24.6 replacement25.7 and25 26 4.4 and alcoholic4.4 drinks 18.0 not only in response to the import controls imposed by various foreign countries, but also to address the damage to the reputation of Japanese agricultural Food25.4 service25.4 market size 5 (JPY trillion)5 16.5 8 8 food services21 21 1.8 trillionOf which: yen in food, 2019 beverages 15.1 Size of the24.0 meal-replacement market 20 19.4 products caused by concerns about radiation in the aftermath of the nuclear reactor accidents that accompanied the 2011 Great East Japan Earthquake. Size of11 the meal-replacement12 market 24.6 market has grown24 25 15 and alcoholic drinks 1.013.81.2 1.01.3 1.21.5 1.31.6 1.518.01.7 1.61.8 1.7 1.8 23.2 Food service market10.3 size 12.8 16.5 7 22.8 10.1 20 20 0 0 1.8 trillion yen in 2019 7 10 24.0 9.8 23 11.2 15.1 2011 201220111120132012201420132015201420169.620152017201620182017 2018 24 15 9.5 13.8 9.3 (Year) (Year) 10 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Exports and Imports in Japan and Other Countries and Regions 23.2 10.3 2006 2007 2008 20097.8 20108.5 2011 2012 2013 201412.82015 2016 2017 2018 2019(Year) (Year) Source:22.8 Based8.9 on data from the Japan Ready-made10.1 Meal Association 6.7 9 10 8.7 9.8 22 23 Source: Based 6.1on Ministry of Economy, Trade and 11.2Industry, "E-Commerce Market Survey" 8.4 and 9.6the Japan Foodservice Association 5.3 9.5 9.3 4.410 5 7.8 8.5 8 9 8.7 8.9 21 22 6.7 Size of the meal-replacement market 5.3 6.1 1.0 1.2 1.3 1.5 1.6 1.7 1.8 U.S. EU and U.K. China Taiwan Hong Kong Singapore Australia 8.4 4.4 How to Read the Table Demand7 for delivery vehicle drivers has increased as a20 result of the e-commerce 0boom,5 and the shortage of drivers is forecast to become more severe. 8 21 Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports 2011 2012Size of 2013the meal-replacement2014 2015 market2016 2017 2018 (Year) 2006 2007 2008 2009 2010 2011 2012 2013 2014 1.02015 1.22016 1.32017 1.52018 1.62019(Year)1.7 1.8 U.S. EU and U.K. China Taiwan Hong Kong Singapore Australia Total (JPY100 million) 89 5638 40 3029 37 1975 210 36 268 3 50 19 8 2814 Delivery Vehicle7 Drivers – Supply and Demand 20 0 Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports 2011 2012 2013 2014 2015 2016 2017 2018 (Year) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(Year) Polished rice ◎◎◎◎○◎○◎◎◎○◎◎◎ Total (JPY100 million) 89 5638 40 3029 37 activities PR/SR 1975 210 36 268 3 50 19 8 2814 (Million persons) ◎◎◎◎○◎○◎◎◎○◎◎◎ Beef (frozen) ○○○○××○×○×○×○○ Polished rice Beef (frozen) ○○○○××○×○×○×○○ Pork (frozen) ×○×○××××○×○××○ 1.2 Demand Supply Pork (frozen) ×○×○××××○×○××○ Poultry (frozen) ×○×○××××○×○○×○ Poultry (frozen) ×○×○××××○×○○×○ There will be shortage of 278,000 drivers Persimmons ○○○○××○×○×◎×○× Persimmons ○○○○××○×○×◎×○× 1.1 Cherries ×○○×××○×○×◎××× Cherries ×○○×××○×○×◎××× Grapes ×◎○○××○○○×◎××○ 1 Grapes ×◎○○××○○○×◎××○ Oranges ○○○○××○×○×◎××○ Melons ×◎○◎×○○×○×◎××◎ Oranges ○○○○××○×○×◎××○ CabbageTo take an example,×○○○×○○◎○◎◎◎×◎ cher- ries and grapes can be im- Melons Onions ×◎○◎×◎○◎○◎◎◎×◎ 0.9 ×◎○◎×○○×○×◎××◎ ported into Japan from the

Cabbage ×○○○×○○◎○◎◎◎×◎ U.S., but cannot be export- organization Our ed from Japan to the U.S. 0.8 Onions ×◎○◎×◎○◎○◎◎◎×◎ (Million persons) (Million persons) 2017 2020 2025 2028 (FY) (Forecast) (Forecast) (Forecast) 1.2 Demand Supply Notes: 1. Export/import amounts are from actual results for fresh and processed meats; dairy products and eggs; rice; and fruit and vegetables from 2019 trade statistics. 1.2 Notes: 2. ◎Permitted unconditionally; ○Permitted conditionallyU.S. or results recorded;EU and U.K.Not permittedChina Taiwan Hong Kong Singapore Australia (MillionDemand persons) Supply Source: Based on Railway Freight Association, "2018 RFA Headquarters Committee Report" × U.S.ExportsEUImports and U.K.Exports ImportsChinaExports ImportsTaiwanExportsHongImports KongExports SingaporeImports Exports ImportsAustraliaExports Imports 1.11.2 1.1 Demand Supply TotalExports (JPY100 million)Imports89 Exports 5638Imports 40 Exports 3029Imports 37 Exports 1975Imports 210 Exports 36 Imports 268 Exports 3 Imports 50 Exports 19 Imports 8 2814 (Million persons) Total (JPY100 million) 89 5638◎◎◎◎○◎○◎◎◎○◎◎◎ 40 3029 37 1975 210 36 268 3 50 19 8 2814 1.11 Polished rice 1 ◎◎◎◎○◎○◎◎◎○◎◎◎ 1.2ThereDemand is anSupply urgent need to respond to changes in food consumption patterns Polished riceBeef (frozen) ○○○○××○×○×○×○○ 0.91 Japan’s exportBeef framework(frozen)Pork (frozen)○○○○××○×○×○×○○ ×○×○××××○×○××○for agricultural and livestock products needs to be strengthened. 0.9 1.1 and to issues affecting distribution. Pork (frozen)Poultry×○×○××××○×○××○ (frozen) ×○×○××××○×○○×○ 0.80.9 Poultry (frozen)Persimmons×○×○××××○×○○×○○○○○××○×○×◎×○× 12 0.8 1 2017 2020 2025 2028 (FY) ZEN-NOH REPORT 13 20170.8 2020 (Forecast) 2025 (Forecast) 2028 (FY)(Forecast) PersimmonsCherries○○○○××○×○×◎×○××○○×××○×○×◎××× 2017 (Forecast) 2020 (Forecast)2025 (Forecast)2028 (FY) 0.9 (Forecast) (Forecast) (Forecast) Cherries Grapes×○○×××○×○×◎××××◎○○××○○○×◎××○ Grapes ×◎○○××○○○×◎××○ 0.8 Oranges ○○○○××○×○×◎××○ 2017 2020 2025 2028 (FY) Oranges Melons○○○○××○×○×◎××○×◎○◎×○○×○×◎××◎ (Forecast) (Forecast) (Forecast) Melons Cabbage×◎○◎×○○×○×◎××◎×○○○×○○◎○◎◎◎×◎ Cabbage Onions×○○○×○○◎○◎◎◎×◎×◎○◎×◎○◎○◎◎◎×◎ Onions ×◎○◎×◎○◎○◎◎◎×◎ Establishment of Production Infrastructure About ZEN-NOH About Labor Support Measures and Measures to Secure Agricultural Workers Adoption of Revolutionary New Technologies and Materials, including Agricul- that are Implemented in Collaboration with JA and Partner Companies tural ICT for Farming Management System and Farm Operation Efficiency

Working together with JA and with regional partner companies, ZEN-NOH is strengthening With the decline in the agricultural workforce and the increase in average farm size, there is a need for further enhancement of manage- support for agricultural producers that are suffering from labor shortages, by implementing ment efficiency and further improvements in productivity. ZEN-NOH is working to promote the adoption of revolutionary new technologies cultivation under contract measures whereby producers can contract out tasks such as planting and materials, such as ICT, that can contribute towards addressing these issues. out seedlings, sorting vegetables or fruit, etc. We implement support for agricultural producers For more information about agribusiness general planning ➡ P26 environment Our by establishing collaborative councils with a wide range of stakeholder organizations, including partner companies, prefectural-level JA federations and CHUOKAI (Prefectural Central Union of Integrating the Z-GIS cloud-based farming management system with other enterprises Agricultural Cooperatives) organizations, KEIZAIREN, the Norinchukin Bank, etc. In 2020, we are With the Z-GIS system, utiliza- aiming to realize cross-regional labor support measures, for example through the establish- Linkage with pest control equipment tion of which began in 2018, data ment of a Kyushu regional council and a Chugoku-Shikoku regional council. Cultivation under contract, involving cabbage planting/sorting relating to plant varieties, produc- For more information about agribusiness general planning ➡ P26 tion records, agricultural work in- Producers formation etc. can be inputted on a JA Access field-by-field basis on digitalized Social welfare facilities Work recording function initiativesOur Producers maps, allowing integrated man- Data Farming Yield management needed AI for paddy rice AI for soybean in the same prefecture management system function cultivation cultivation Labor support agement of geographical data and for (with the prefectural government Provision of labor measures · Request for cultivation analysis (Field information, production acting as intermediary) under contract cultivation data. In 2021, we aim to records, management information) Pest control · Payment of cultivation management Analysis expand the functionality of Z-GIS function results · Provision of labor for light work JA under contract fees through linkage with BASF Digital A wide range of data capabilities Shipment of Farming’s xarvio® FIELD MANAG- Soil diagnostics · Collation of data regarding demand Drones Sensors results Satellite data for labor support measures vegetables/fruit ER cultivation management sup- · Deciding which fields to focus on, port system, and to realize more and surveying growing conditions widespread adoption of Z-GIS by · Negotiating cultivation under Planning and Agricultural contracting firm contract fees with producers proposals JA ZEN-NOH Oita agricultural producers. businesses Our

Nakaya Agri Ltd. · Labor support coordinator · Negotiation and coordination · Provision of labor with Nakaya Agri Ltd. “With One” Polystyrene box type hydroponics system Measures to Assist Livestock Farms · Setting of fees through Provision of labor Whole-yield · Crop sale planning and proposals negotiation between ZEN-NOH, contract sales · Agricultural machinery rental “With One” is a polystyrene box type hydroponics system devel- With the aim of boosting livestock farmers’ incomes and labor saving, JA and the individual farmers (cabbage) oped by ZEN-NOH that makes cultivation management easier. It al- we are promoting the adoption of ICT equipment such as the “Mobile lows effective utilization of seedling cultivation facilities during peri- Gyuonkei” system for monitoring signs that notify when a cow calve, Agricultural machinery rental ods when they would otherwise be vacant, and as well as of unused “Farmnote Color,” which uses artificial intelligence (AI) to support feed greenhouse buildings, etc. The system is being adopted to meet vari- management, etc.

Labor Support Measures Implemented in Collaboration with Partner Enterprises ous goals, including the implementation of soil pest prevention mea- We are also working to promote adoption of the “Synchro ET System,” activities PR/SR (Using JA ZEN-NOH Oita as an example) sures, agricultural corporations’ annual employment strategies, etc. which makes it possible for fertilized ova collected from cows in a beef We are promoting the widespread adoption of the “With One” sys- producer’s farmyard to be transplanted into cows belonging to a different With the aim of helping to ensure an adequate supply of labor for agricultural producers, we have been rolling out a variety of initiatives, including services tem by formulating cultivation manuals, implementing training ses- farmer on the same day, and of pig-farming production management that match workers to producers using online recruitment websites, adoption of collaboration with social welfare facilities so that people with disabilities have sions in collaboration with JA, etc. “With One” has been adopted at a software that contributes towards enhanced managerial analysis. opportunities to work on farms, collaboration with JA on the operation of farms that provide practical, hands-on experience for cultivating new farmers, etc. cumulative total of over 200 locations. For more information about the livestock production business ➡ P36

For more information about the horticultural and Using AI to check status packaging materials business ➡ P33 Coming into heat, signs of illness, activity minimization, etc.

Herd management system Transmission via organization Our the cloud Abnormality notification Searching for and displaying individual animals

Capturing cow activity levels

Smart device

Individual animal “Challenge Farm Hiroshima – Joge Farm,” which is run by the headquarters of JA On-site training seminar organized by JA Group Fukushima, involving collaboration recognition using Data is linked with the “Farmnote” Close smartphone and RFID cloud-based herd management system ZEN-NOH Hiroshima to cultivate new farmers. between farmers and social welfare facilities, at which participants were able to Tomato cultivation using the “With One” contact Cow activity is displayed in graphical form experience planting peanuts. system The “Farmnote Color” device is worn by the cow to facilitate activity data collection.

14 ZEN-NOH REPORT 15 Securing Our Position as a Leading Brand for Food Products About ZEN-NOH About Product Development Nippon Yell A-Coop Brand Products

ZEN-NOH is developing its Group products that are full of the delicious flavors that For more information about sales development ➡ P24 To further the effective branding of ZEN-NOH Group prod- “high-quality products for daily For more information about life support business ➡ P39, etc one associates with Japanese domestic agricultural and livestock products. ucts, we launched Nippon Yell, a new product brand, in April living that embody trustworthi- 2019. In the future, under the Nippon Yell brand framework, we will be rolling out not only new products for the ZEN-NOH ness and peace of mind” Group’s national brands, but also products that are co-branded A-Coop Mark is a JA Group brand that aims to use domesti- with other food manufacturers or trading companies. cally-produced raw materials as much as possible. The prod- environment Our ucts developed for this brand reflect the views of JA members and consumers, and make effective use of JA’s unique strengths. A-Coop brand products are sold at JA and A-Coop retail outlets throughout Japan (please note that not all stores carry these products).

We have developed packed brown rice, in collabora- We offer Shiho Green Tea, a variety of tea sold under the We sell bags of persimmons that are ready-sliced, tion with sales partner company Yuwaeru Co., Ltd., for A-Coop brand which is very popular, in tea-bag form. Only making them easier and more convenient to eat. sales via Amazon Japan. Japan-grown tea-leaves are used to make this product. “Homeraresu” vinegar, a prod- uct developed in collaboration initiativesOur with the National Women’s As- sociation “Fresh Ms” has proved very popular.

“Kantan Wafu Dashi Uma! Dashi Pakku” (soup-stock packs) is a product developed in collaboration with the Na- tional Council of the Agricul- We have developed “Broccoli Rice” in col- tural Cooperative Women’s laboration with Daiei. Our broccoli salads Association.

We have developed a series of sweets products made businesses Our are sold through 7-Eleven. from domestically-produced fruit juice (made using fruit grown in specific regions of Japan), for Daiso. ZEN-NOH Brand Collaboration with Other Enterprises “the taste of Japan” We have also rolled out a wide range of products that were “ZEN-NOH Brand” is the brand used for processed foods de- developed in collaboration with other business enterprises. veloped by ZEN-NOH, using raw materials that derive from do- We have developed a range of mestically-produced agricultural and livestock products. We products, focusing mainly on dried fruits, that are produced have rolled out around 100 products that are made from care- activities PR/SR using fruit grown in specific fully-selected Japanese materials, and which embody pains- regions of Japan, for Fami- taking attention to customers’ safety, health and peace of mind. lyMart.

Product developed in collaboration Product developed in collaboration with Harada Tea Processing Co., Ltd. with UHA Mikakuto Co., Ltd. (Harada Seicha) Our organization Our

The NOKYO Series was de- Three types of “ZEN-NOH Original veloped by a special commit- Disaster Preparedness Foods” that tee established to support are made using domestically-pro- the ZEN-NOH Group’s nation- duced materials and designed to al brands. Product developed in collaboration Product developed in collaboration keep for a long time. with ITO EN, Ltd. with NIPPON ACCESS, Inc.

16 ZEN-NOH REPORT 17 Building Our Strategy for Developing Overseas Markets About ZEN-NOH About Strengthening sales efforts to boost exports of Japanese agricultural and Ensuring a Stable Supply of Raw Materials for livestock products Animal Feed Products ZEN-NOH has business locations all over the world, and we are working to expand export sales. ZEN-NOH staff are assigned to work at our offices Measures implemented in the U.S. in Hong Kong, Singapore, the U.K., China, Taiwan, and the U.S., and we are implementing measures to boost sales in each individual country and region. In 1979, ZEN-NOH established ZEN-NOH Grain Corporation (ZGC) which operates a grain ex- Over the last few years, we have been working to implement promotion and marketing for Japanese agricultural and livestock products, for exam- port elevator in New Orleans, LA, in the U.S. ple by setting up our own e-commerce website in Hong Kong, establishing direct sales outlets for Japanese agricultural and livestock products in

In 1988, to originate grain from the producing areas, ZGC acquired CGB Enterprises, Inc., and environment Our Taiwan, etc. We have also established new sales offices in China, a market to which exports are expected to grow in the future. established a supply chain from the producing areas to ZGC with over 100 inland grain elevators. ZEN-NOH Grain Corporation (U.S.) For more information about export business ➡ P25 In 2018, as world grain demand increases and tougher competition in grain origination, ZGC expanded its export elevator and its annual export capacity is now 18 million MT (the biggest ZEN-NOH Group’s export-related overseas business locations export elevator in the world). In 2020, ZGC reached an agreement with Bunge, a grain multina- tional, to acquire 35 inland grain elevators to strengthen the origination.

SFG Holdings JA ZEN-NOH U.K. Measures Implemented in Brazil International Europe Limited (ZIE) ZEN-NOH SHANGHAI CO.,LTD. (newly-established) New York In 2017, Amaggi Louis Dreyfus ZEN-NOH Holdings S.A. (ALZ) was established as joint venture ZEN-NOH ZEN-NOH London Bulgaria Beijing Oce ZEN-NOH Exports Promotion Division, among ZEN-NOH group, Amaggi, a Brazilian grain company and Louis Dreyfus, a grain multinational. Representative ALZ (Brazil) initiativesOur Oce JAPAN AGRI PRODUCTS Beijing JA ZEN-NOH International Corporation ZEN-NOH (ZNA) EUROPE JSC ZEN-NOH Hong Kong headquarters (Tokyo) Los Angeles America Corporation With this grain origination and export company, we established a reliable grain procurement network. Representative Oce P&Z FINE FOODS LLC JA ZEN-NOH Meat Foods Shanghai (Hong Kong) Ltd. Gulf Japan Food Fund (GJFF) ZEN-NOH ZEN-NOH Taiwan Oce Measures Implemented in Canada Dubai International Hong Taiwan ZEN-NOH International Corporation Hong Kong Ltd. In 2015, GrainsConnect Canada Operations Inc. (GCC), a grain origination and export compa- Kong Taiwan ZEN-NOH Singapore Oce ny was established as joint venture with GrainCorp, an Australian grain company. Singapore JA ZEN-NOH [ZEN-NOH Group In 2018, GCC reached an agreement with a Canadian grain company to build an export ter- International Asia Pte. Limited (ZIA) Export-related Business Locations] minal, Fraser Grain Terminal (FGT). It is under construction and completion is expected in 2021. … ZEN-NOH’s overseas oces

… Local subsidiaries For more information about the livestock production business ➡ P36 GCC (Canada) businesses Our Local sales subsidiaries … (including logistics and processing) … Newly-established Stable Procurement of Fertilizer Manufacturing and stable distribu- Tie-up fund … Materials tion of high quality agrochemicals ZEN-NOH has been working to ensure a stable supply of raw ZEN-NOH has co-developed some agrochemicals with agro- materials for fertilizer production for many years by building rela- chemical companies and been toll manufacturing the technical tionships with overseas suppliers. In China, for example, ZEN-NOH grades with overseas partners. It is required cutting-edge tech- has invested in Wengfu & Zijin Chemical Industry Co., Ltd., in a part- nologies and know-hows to manufacture agrochemical techni- PR/SR activities PR/SR nership with Guizhou Phosphate & Chemical (Group) Co., Ltd., a cal grades. Therefore ZEN-NOH is collaborating with overseas leading company producing phosphates in China, to realize stable toll manufacturers to establish stable distribution of high qual- supplies and increase handling of high-quality phosphate fertilizer. ity agrochemicals at lower cost based on its know-hows gener-

For more information about the fertilizer business ➡ P30 ated in its agrochemicals research laboratory. The jashop.hk Hong Kong e-commerce website, sell- “JAJA”, a direct sale outlet for Japanese agricultural A processing facility in the U.S. for Japanese wagyu ing Japanese agricultural and livestock products and livestock products, opened in Taiwan beef, undertaking processing operations for the U.S. (launched in June 2019) e-commerce market.

Measures in Response to Market Needs organization Our ZEN-NOH is working to establish an effective supply system for Japanese agricultural and livestock products, for example by boosting exports of chicken eggs to Hong Kong to meet local needs, implementing unified trial sales under Wagyu Japanese beef the ZEN-NOH brand of sweet potatoes sourced from several different produc- slicing demonstration tion regions, working together with producers etc. to develop Halal-certified and sales at a Japa- nese-owned retail chain Wengfu & Zijin Chemical Industry Co., Ltd., located in Fujian Province, China, in Our overseas toll-manufacturer wagyu Japanese beef products for the Middle Eastern market, etc. in Hawaii, U.S. which ZEN-NOH has invested

18 ZEN-NOH REPORT 19 Support for Building Healthy Local Alliances Communities – Collaboration with Business Enterprises About ZEN-NOH About “Lifeline” Initiatives to Support People Measures to Support Farm-Stay B&Bs Proactive Building of Alliances with Business Enterprises Living in Local Communities that Make Use of the JA Group Network Responding to the increasingly rapid pace of change in the wider environment affecting food production, agriculture and local communities, ZEN-NOH has been undertaking speedy business development through the forging of alliances (including both capital and operating tie-ups) At a time when the need to develop strategies to help people liv- In order to get more people visiting local communities and with, and conducting of M&A activity in relation to, a wide variety of business enterprises that are top-class in their respective industries in ing in rural communities and communities in intermontane zones boost consumption in these communities, thereby helping to revi- terms of scale or know-how. In the future, ZEN-NOH will continue to actively pursue alliances and M&A initiatives, including capital tie-ups. who have limited shopping options has become a major issue, ZEN- talize the local economy, ZEN-NOH is supporting the commercial- Establishment of a photovoltaics joint venture company in

NOH has been working to help preserve local community hubs by ization of farm-stay B&Bs that enable urban residents, overseas environment Our Capital and business tie-up with a leading food services chain collaboration with a major general trading company putting forward suggestions for store refurbishment and business tourists, etc. to spend an extended period in the countryside and model alteration in response to requests from local JA branches and taking part in farming activities, etc. Investment and operating tie-up Company A Company B, a general local communities, as well as offering proposals for “model stores” We have begun operation of the nohaku.net farm-stay portal ZEN-NOH (food services chain) ZEN-NOH trading company that provide the additional functions needed by communities. site, which presents information about farm-stay B&Bs, etc. Planning and preparation Raw materials sales Establishment of a joint venture company To maintain and strengthen the energy infrastructure of local throughout Japan, and we are working together with local JA Sale of Installation of communities, including those located in intermontane zones, ZEN- branches etc. to implement “model district” events (involving farm Company A’s dedicated Shipment ZEN-NOH Group Electric power electricity JAMC Solar equipment JA Group NOH has been promoting consolidation of service stations and con- experience activities, etc.) and formulate start-up handbooks for fields, etc. subsidiaries, etc. company Energy G.K. facilities version to self-service operation, as well as developing the home farm-stay B&Bs, as well as promoting the commercialization of ZEN-NOH has been a major supplier of domestically-produced In 2012, ZEN-NOH and Company B, a general trading energy business with an optimal energy mix of electric power, petro- vacant property management services. In this way, we are contrib- raw materials for Company A, a leading food services chain that oper- company, established a joint venture company to engage in leum and liquefied petroleum gas (LPG). uting towards the building of healthy local communities. ates nationwide, since Company A was first established. photovoltaics (solar power) business utilizing the roofs of initiativesOur For more information about the life support business For more information about the energy business ➡ P38 ➡ P39 During Company A’s business expansion process, in 2017 ZEN- large-scale JA Group buildings throughout Japan, including For more information about the life support business P39 ➡ NOH began equity participation (i.e. invested) in Company A, thereby rice collection, storage and shipping facilities, etc. further strengthening the existing relationship. This has helped to en- This project is helping to strengthen the agricultural sure greater income stability for farmers through the expansion of management infrastructure by promoting the adoption of contracted cultivation, etc. Currently, ZEN-NOH is also supplying do- renewable energy and the effective utilization of resources mestically-produced materials for Company A’s overseas outlets as and facilities, while also helping to support the reinvigora- well, and they have attracted positive comment from local consumers. tion of local communities. Our businesses Our Capital and operations tie-up with a convenience store operator Purchase of shares in the subsidiary of a food manufacturer (M&A) (anticipated*) Farming experience activity at a farm-stay B&B ZEN-NOH is supporting the shopping infrastructure through the adoption of mobile shops Acquisition of Conversion to ZEN-NOH Group shares in Company C, a food Company E, a general subsidiary status subsidiary Company D manufacturer trading company via a takeover bid farm-stay portal site Topics Integration as a subsidiary and Acquisition of shares in Company D, 「The nohaku.net」 sale of raw materials Company D (anticipated) a convenience store Holding fair operator This portal site undertakes centralized collation and Directly run Food services outlets events ZEN-NOH Sale of raw dissemination of local information, and provides stream- Asahi Broiler Co., Ltd. materials Product sales Food services activities PR/SR lined, integrated farm-stay and farming experience reser- enterprises, etc. ZEN-NOH has for some time now had an operational tie-up relation- vation and payment settlement functions. The website ship with Company D, the operator of a leading convenience store chain, in A ZEN-NOH Group subsidiary acquired shares in Asahi Broiler Co., went live in October 2019. relation to joint store operation and product development. In 2020, when it Ltd., which is a subsidiary of Company C, a major food products manufac- was announced that Company E, a general trading company, was planning turer, and in 2020 Asahi Broiler became a member of the ZEN-NOH Group. An integrated store that combines a FamilyMart convenience store with a ZEN- to make Company D a subsidiary of Company E through a takeover bid, NOH direct sales outlet Through this M&A project, ZEN-NOH was able to expand into a new busi- ZEN-NOH announced that it would be participating in this takeover bid. ness area – production and sale of processed foods for take-out food out- It is anticipated that, once the takeover was completed, ZEN-NOH lets and food services companies – which it had not previously been in- would acquire shares in Company D, and an operational tie-up agreement volved in. Working through aimed at realizing mutual business expansion through collaboration organization Our Asahi Broiler, ZEN-NOH is would be signed between ZEN-NOH, Company D and Company E. This will planning to promote a switch help to boost the sale of domestically-produced agricultural and livestock over to domestically-pro- products, while also strengthening community duced materials to replace infrastructure through the development and op- the imported food materials eration of jointly-run stores in local communities. that are currently widely used * This information was correct as at the date of compilation of Service stations are being converted to self-service operation to help ensure a by food services firms. this document (in mid-August 2020), but is subject to change. stable supply of fuel for local communities

20 ZEN-NOH REPORT 21 Initiatives Contributing to the Realization of the SDGs About ZEN-NOH About

The cooperative The JA Group and the SDGs association Case Studies of Measures Implementing through ZEN-NOH’s Business Activities perspective At the 28th JA Annual Meeting of Delegates, held in March 2019, the JA Group The JA Group is In every aspect of our business activities from production through to sales, we are working to continue and expand measures that con- resolved to promote international linkage and the proactive dissemination of infor- approaching tribute to the realization of the SDGs in relation to the environment, society and agriculture. The building a sustainable the SDGs from The new growth mation, as a measure relating to the U.N. Sustainable Development Goals (SDGs). food supply and sustainable areas perspective communities perspective In addition, in May 2020 the JA Group SDGs Declaration was formulated. five Production Transportation perspectives:

As a cooperative association rooted in local communities, focusing on food and environment Our The responding to The proactive dissemination common global issues of information perspective Reducing workloads agriculture, the JA Group seeks to contribute through its business activities to- perspective and the environmen- wards the building of sustainable agriculture and sustainable local communities. tal burden through a modal shift in unpas- teurized milk trans- We in the JA Group support the 2030 Agenda for Sustainable Development, and we will be Creating employment through agricultural labor Realizing a technological revolution through the portation The JA Group SDGs Declaration working towards the realization of the Agenda through our business and other activities. support measures promotion of “smart” agriculture Food processing Food and agriculture business sector Local communities and life support business sector 1. We will be working towards sustainable food 5. We will be working towards production and the revitalization of agriculture. the building of sustainable, prosperous local communities 2. We will be working to build sustainable food systems. in which people can live with initiativesOur 3. We will be working to reduce the environmental peace of mind. Cyclical environ- footprint of agricultural production. mental conserva- 4. We will be striving to ensure that agriculture fulfils tion business us- its multi-faceted functions. ing oyster shells Supporting disabled people’s participation in soci- Implementing the Rice Paddy Organism Survey to to improve the ety through collaboration between the agricultural get people thinking about the relationship between quality of the soil Aiming to realize sector and social welfare facilities the environment and agriculture a sustainable society Sales Cooperative and organizational management sector 6. We will strive to liaise with and participate in the activities of diverse stakeholders and colleagues, both within and outside Japan. Our businesses Our

Food loss reduction by means of the effective utilization of fully-ripe kabosu (a type of citrus fruit) through collabora- Provision of free milk for use in Kodomo Shokudo Holding of agricultural produce markets based ZEN-NOH’s Initiatives Contributing to the Realization of the SDGs tion with another enterprise and by food-banks around the theme of food loss

Many of the JA Group’s business activities are related to the SDGs. ZEN-NOH aims to continue developing sustainable businesses and generating value from an SDGs perspective in every segment of the food value chain, from production to sales. Topics “3-R” Crop and Livestock Coop- activities PR/SR Value Chain Mapping, Covering Business Activities Example of Measures Taken erative Resource Recycling Brand *1 from Production to Sales Hiroshima Prefectural Headquarters is working to safeguard Animal Goal 1 Goal 15 Goals 1 and 2 Goal 12 Goal 2 the local environment through the launch of a crop and livestock Pastoral Pastoral excreta Composting Strengthening Support to help disabled farming farm center Promoting Support for Food safety and cooperative resource recycling brand “3-R”. With the aim of handing persons etc. secure Kodomo peace of mind, Ensuring a stable positive impacts (collaboration environmentally-friendly Animal feed employment Shokudo and ethical supply of food between the agricultural sector and agriculture materials down to future generations the region’s beautiful agricultural and consumption *2 Rice grown for animal feed Compost social welfare facilities) satoyama (traditional community-managed forests) landscapes, Food crops this project involves the certification of “3-R” products, which are Livestock Vegetables, etc. products agricultural and livestock products, and processed food products Rice Value Agricultural Storage and Food Transport and organization Our Production Sales that use these as raw materials, which are produced through re- Compost stock point chain materials transportation processing logistics Agricultural source recycling products based around in- Consumers Goal 10 Goal 6 Goal 13 Goal 12 Goal 13 Goal 12 tegrated mixed Safeguarding water arable and live- “3-R” refers to the three “Rs” of Recycling compost derived from livestock farming as a Resource, Minimizing resources and Reducing CO2 Recycling Reducing CO2 Reducing thereby integrating arable and pastoral farming in a Repeating process. Fair trade protecting ecosystems emissions food waste emissions food loss negative through rice paddy stock farming. *1 The use of feed rice and ordinary paddy rice as animal feed for livestock helps to reduce the impacts management amount of unused cultivated land. *2 Making use of compost derived from livestock farming helps to create sustainable agriculture.

22 ZEN-NOH REPORT 23 Sales Development Export Business Export Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Role ZEN-NOH’s Initiatives

In the Sales development, ZEN-NOH is working on building a value chain for domestic agricultural and livestock products, taking on such functions as sales de- In the export business, ZEN-NOH is working to promote the ex- velopment, product development, production area development, and sales consultations with JA officers and employees. The ZEN-NOH Group MD (Merchandising) port of domestic agricultural and livestock products and to create Strengthening the Sales System Subcommittee was setup in April 2019 to respond flexibly and promptly to the needs of consumers and actual consumers, strengthening product development and production centers for export. While the practical, day-to-day as- with a Focus on Overseas Markets branding with all the capabilities of the ZEN-NOH Group. In addition to this, the MD Planning Section was created in the Sales Development Division to support and pects of exporting is centralized at the subsidiary of JA ZEN-NOH check progress. International Corporation, ZEN-NOH establishes overseas bases to ZEN-NOH is working in cooperation with local sales outlets in over- environment Our President & CEO Advisors bolster sales in those regions. seas markets to create a sales system to meet the needs of the market.

ZEN-NOH Group MD Subcommittee Decision making General Manager Vice President Leader Chief ocer Sub-leader Councilor Executive Vice President in charge of business ZEN-NOH is also building efficient shipping systems while The Group also takes part in trade fairs in areas where local bases President of Legal & Risk Management Division maintaining freshness through joint distribution, as well as testing are situated in order to gain new contracts with actual consumers. Relevant Divisions President and adopting new technologies effective for maintaining the quali- Secretariat Sales Development Division, MD Planning Section ty of fresh fruit and vegetables. Supports Checks progress

In order to provide sales-based solutions, relevant departments, prefectural Company A Company B Company C Company D Company E Overview of Export Business Development Working Group headquarters, and companies come together based on the product development (CVS) (e-commerce) (Mass retailer) (Food company) (Restaurant business) plan, and a working group (Team MD) is formed in which food manufacturers, Team MD Team MD Team MD Team MD Team MD trading companies, and related organizations, etc. take part depending on the case. Production Overseas

centers markets initiativesOur Supply-chain development Working Group Candidates JA Restaurants (meet together in Team MD) For products and brands that are particularly problematic, expert committees are formed to exchange information as appropriate and participate in the working groups depending on the case. ZEN-NOH Exports Promotion Division Promotion Exports Corporation Developing International ZEN-NOH JA Food Manufacturers Company F, G, etc. Wholesalers, Expert Committees Frozen & Processed ZEN-NOH Brand KEIZAIREN production Fruit果汁飲料部会 Juice Committee 冷凍食品部会Food Committee 全 農Committee ブ ランド 部 会 centers retailers Trading Companies Company J, K, etc. Alliance Cooperate ZEN-NOH Planning and Information ZEN-NOH Group Companies ZEN-NOH Divisions & Prefectural Federations & proposals collection Super- Related Organizations Association N, O, etc. Prefectural Headquarters Prefectural JA prefectural headquarters markets The Hong Kong Food Expo, Hong Kong’s largest international food fair Questions, Export Producers consultations growth e-commerce

Providing High-Value Products by Being Involved in Everything from Production to Sales businesses Our ZEN-NOH Sales Development Division ZEN-NOH’s Initiatives Building a Supply System to Meet Production Distribution Value Products the Needs of Overseas Markets Service Time Information ！ Sales More value can be created with the JA Group Domestic Agricultural help of the Sales Development Division! ZEN-NOH is developing a supply system and production centers in and Livestock Product Trade Show Interview Japan to meet the needs and demands of overseas markets directly discerned from the Group’s overseas bases. Interview Helping to Maintain and Expand In collaboration with JA Bank, ZEN-NOH holds the JA Group Do- For fruits and vegetables, ZEN-NOH is creating a system to enable

Product Development mestic Agricultural and Livestock Product Trade Show every year the Domestic Production Infrastructure supply all year round, conducting collective trial sales of ZEN-NOH activities PR/SR as a place for the JA Group and its producers from across the coun- by ZEN-NOH Group MD through the Export Business branded sweet potatoes that are in high demand overseas, reducing try to talk face-to-face with actual consumers. Each year, more costs for rice, and aiming for a stable supply with the cooperation of Subcommittee Across Departments than 120 organizations from all over the country exhibit and meet Joined in 2008 multiple production centers. For livestock products, the Group is building Exports Promotion Division, Joined in 2010 with buyers from various companies including supermarkets, co- Management Dept. a supply system that includes local processing to meet retail demands. Sales Development Division, ops, restaurants, and food processing manufacturers. NAGATOMO Yu MD Planning Dept. YAMADA Shinnari In conjunction with overseas bases in Europe, the United States, and Asia, and JA ZEN- NOH International Corporation, which is mainly responsible for export operations, I am I work in the newly created MD Planning Section in the Sales Development currently working to convey to the domestic production centers, the needs garnered di- Division. As well as setting up the ZEN-NOH Group MD Subcommittee in April rectly from the different regions, and to propose products together with the production

2019, I am involved in supporting and checking its progress. Product develop- centers. Because reducing transportation costs and making prices competitive is a pri- organization Our ment with domestic agricultural and livestock products can be difficult due to ority issue in exports, I am also working on a transportation test to preserve fruit and restrictions on time and quantity, but it is a very rewarding job. In the fiscal year vegetable freshness by sea in collaboration with other departments of the Group. 2019, we developed 61 products, including dried fruits and gummy candy for In the export business, we are particularly struggling with the fact that regulations are FamilyMart, packed brown rice for Amazon, and veggie rice for Daiei. From the different in each country so we cannot take the same approach for all countries. In recent fiscal year 2020 onward, we will continue to develop products in collaboration years, the rise of e-commerce has caused a wave of change in how people buy so we with food manufacturers and trading companies, as well as departments, pre- must propose products and sales methods that can meet these new kinds of demands. fectural headquarters, and Group companies. We have also applied for an over- I would like to continue to contribute to the stability of the domestic market and maintain seas trademark for Nippon Yell which we registered recently here in Japan. In and expand domestic production infrastructure by building lasting sales channels over- this way we are looking to expand our sales channels overseas in the future. seas. * The March 2020 trade show was canceled because of the COVID-19 The newly developed export-only sake brand TOKYO Z1

24 ZEN-NOH REPORT 25 Agribusiness General Rice Business Planning Agribusiness General Planning Page Rice Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

In agribusiness general planning, ZEN-NOH is working to- In the rice business, ZEN-NOH supplies harvested rice to end gether with local JAs to maximize farmers’ incomes through TAC Activities users through the JA Group’s rice milling wholesale brand Efforts to Promote the Cultivation such things as the testing and wide-use of farming-related The Team for Agricultural Coordination (TAC) is a term used Pearl Rice Wholesale and actual consumers such as processed of High-Yielding Rice technologies and the introduction of new varieties. In addition, for the JA people who visit local farm leaders. ZEN-NOH is rice manufacturers, rice wholesalers, restaurants, and super- Our environment Our through the Team for Agricultural Coordination (TAC) activities, working to support the development of regional agriculture by markets. ZEN-NOH also helps stabilize the rice production busi- ZEN-NOH is implementing an initiative to propose the crop- visiting producers on their farms, ZEN-NOH is promoting ef- reflecting the opinions and feedback of these leaders back into nesses of producers and maintains stable supplies to actual ping of high-yielding rice to farm leaders and producers so they forts to address the issues faced by farmers by reflecting their the JA Group's business. consumers through wider contract farming by making propos- can meet the needs of actual consumers. diverse opinions and feedback in the JA Group’s business. Our activities include proposals for materials and technolo- als on planting based on the needs of actual consumers. In order to spread and expand the use of high-yielding rice gies that contribute to the promotion of agricultural production around the country, ZEN-NOH set up demonstration farms in 86 Agribusiness General Planning Initiatives and improved business, expansion of sales channels for agri- Main Distribution Channels for Rice Handled by ZEN-NOH JAs across 29 prefectures in the fiscal year 2020 to provide in- cultural products, supporting the labor force and business suc- formation on different varieties of high-yielding rice and their Measures Details cession, and a wide range of other initiatives that meet the Producers cultivation. needs of these farmers in their particular regions. In addition, as part of the strategy to expand contract farm- Developing and testing of ing in the wake of more home meal replacement and food ser- Maintain and new technologies and varieties initiativesOur expand Testing and spreading of vice, the JA ZEN-NOH Contract Farming High-Yield Rice Contest production smart agricultural technology JA, ZEN-NOH, KEIZAIREN is held to help motivate and improve producers’ cultivation infrastructure Strengthening eorts to support the labor force Producers techniques. In 2019, Yonami Co., Ltd. from the JA Harenokuni Okayama (formerly JA Ashin) in Okayama Prefecture achieved Reducing total production costs Pearl Rice Wholesale Wholesalers a yield of 800 kg / 10a* and received the ZEN-NOH Chairman's Production Improving on-site responsiveness promotion and technical capabilities Award. * National average yield 514 kg / 10a Supporting GAP certification

Enhance Improving the list of ways Actual consumers, Retailers, end users to maximize income businesses Our proposal- Strengthening TAC activities making and developing human resources capabilities to producers Supporting business succession Award ceremony A field study at a demonstration farm TAC helping to improve business with producers Interview Promotion of Contract Farming Pearl Rice Business (Sales of Milled White Rice) JA Group Program to Support to Strengthen Ties Between Interview

Producers and Actual Consumers Based on the basic principles of safety, security, freshness, and activities PR/SR Widespread Use and Testing GAP Third-Party Certification good quality, the ZEN-NOH Group supply milled white rice, under Joined in 2007 of Farming Technology with The JA Group set out its initiative policy on Good Agricultural Rice Production and the Pearl Rice brand name, from its plants nationwide to custom- Procurement Planning Division. Practice (GAP) in May 2017. The Group is providing local advice ers every day. Aim to Raise Farmers’ Income YAMAMOTO Kentaro and support for production areas aiming to obtain GAP ZEN-NOH also plans to set up a new rice milling plant in Chiku- Since joining ZEN-NOH, I have been involved in the sales of household rice Joined in 2011 third-party certification through the JA Group’s GAP Third-Party go City, Fukuoka Prefecture in November 2020 with the aim of ex- Agribusiness General Planning and sake, rice for sake brewing and rice for processing, which are the raw Division, Farming Planning Section. Certification Support Program run by JA ZENCHU, JA ZEN-NOH, materials for rice crackers and miso, as well as being involved in quality control panding its sales of milled white rice and boosting rice exports. SHIOMI Takashi of the Group’s rice milling plant. Currently, I am engaged in contract farming for ZENKYOREN, and the Norinchukin Bank. high-yielding rice, which has been the focus of ZEN-NOH in recent years. With its aim to maximize farmers’ income, the Farming Planning Section As the number of single-person households goes up, and the demand for

works on testing and widespread use based on a policy of reducing total home meal replacement and food service due to changes in lifestyles increas- organization Our production costs from various perspectives, such as reducing the cost of es, the supply-demand mismatch in product types and prices is widening. As materials and labor, and improving productivity. I am in charge of the ful- such, we are working on more contract farming for stable, long-term trading ly-automated drones for agriculture and I find it rewarding to be able to and stabilized income by making planting proposals to producers based on the contribute to improving the income of producers by promoting the list of needs of actual consumers. ways to maximize income through such things as these new cultivation Rice is not just a staple food; it is an important crop for Japan's world-class and labor-saving technologies. food culture. Because of this, I believe that my job in ZEN-NOH's rice business Going forward, we will continue to expand on-site methods to maximize entails a responsibility to supply safe and secure rice to end users. farmers’ income by establishing new farming techniques through tests I would like to take on this responsibility, helping to maintain and develop and demonstrations, working towards raising the income of producers. paddy field farming. Pearl-chan, An inspection by third-party certifiers the Pearl Rice mascot Rendition of the completed rice milling plant

26 ZEN-NOH REPORT 27 Farm Produce Fruit and Vegetables

Business Farm Produce Business Page Business Fruit and Vegetables Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

The farm produce business handles the collection and sale In the fruit and vegetables business, in order to deliver to of wheat and soybeans produced nationwide, as well as potato Uncovering Demand for Domestic Starch consumers, ZEN-NOH sells fruits and vegetables collected Joint Business starch and sweet potato starch, key regional crops in Hokkaido from producers and JA via the wholesale market and its sub- With the aim of maintaining and expanding demand for domes- Initiatives with JAs and Kyushu. The business also sells dried shiitake mushrooms sidiary, ZEN-NOH Fresh Produce Marketing Corporation to vari-

tic starch, ZEN-NOH has invested in a cellophane noodles manu- environment Our and processed fruit products (fruit juice, jam, etc.). ous business partners, such as retailers and processing manu- facturing business to support the production of cellophane noo- While JAs improve their guidance given to producers on facturers. ZEN-NOH communicates the requests of its business dles made from domestic starch. ZEN-NOH is promoting the new farming techniques to increase productivity, ZEN-NOH is work- Main Distribution Channels for Farm Produce (Starch) Handled by ZEN-NOH partners to JA and producers, and works to promote production development of domestically-produced cellophane noodles prod- ing to maintain and expand its production infrastructure across by expanding the practice of contract farming, leading to the ucts, working to uncover new domestic demand for this food. the JA Group and improve producers' incomes by setting up Producers stable production and supply of fruits and vegetables. collection and shipping facilities that can be used jointly by mul- tiple JAs to increase their sales strength. Main Distribution Channels for Fruits and Vegetables Handled by ZEN-NOH JA, etc. (starch plants) Manufacture

Producers

Hokuren / Kagoshima-ken KEIZAIREN initiativesOur Collect National Starch Cooperative Federation JA

ZEN-NOH (each base o ce) Centralized sales ZEN-NOH and KEIZAIREN

ZEN-NOH Fresh Distributors Wholesale markets Produce Marketing Corporation

Cellophane noodles products using domestic starch The Niigata Prefectural Headquarters onion collection and shipping facility newly Processed foods, potato starch, etc. Food manufacturers Retailers and processing manufacturers, etc. established in 2020.The facility aims to expand production with the collaboration of businesses Our multiple JAs Consumers Efforts to Produce Domestic Consumers Wheat and Expand Demand Reducing Producer Labor

ZEN-NOH is working to expand production of domestic Interview and Expanding Direct Sales Interview wheat from the perspective of creating an upsurge in domestic Stabilizing Producers’ Working to Expand Demand products and better utilizing the country’s paddy fields. In addition to sorting fruits and vegetables, ZEN-NOH is set- Based on a market-oriented concept that assesses market Incomes by Linking Farms ting up facilities that produce packaging to be used as is in su- activities PR/SR for Sweet Potato Starch permarkets, etc. This not only helps to lessen the workload for trends and supplies the crops needed to fulfill demand, ZEN- with Products Joined in 2010 NOH is working on; communication with actual consumers producers but also reflects ZEN-NOH’s efforts to expand sales Farm Produce Division, Joined in 2013 directly to actual consumers. Starch Dept.(sect.) (flour milling, wheat milling, beer companies, etc.), feeding back Fukushima Prefectural Head- KANZAKI Tomoyuki actual consumers requests to production centers, collection at quarters, Fukushima Farming Business Station Fresh Produce Center Sweet potatoes produced in Kagoshima and Miyazaki prefectures are production centers, and sales promotion to actual consumers. TANJI Shohei used to make sweet potato starch. Kagoshima Prefecture has the largest area of sweet potato crops in Japan, with about 30% of all production used I am in the business of selling fruits and vegetables in the northern part of Fukushima to make starch. Sweet potato starch is used as a raw material for sugars Prefecture. Since last year, I have been working on promoting the production and supply such as starch syrup, and is also used to make shrimp crackers, soda pop of broccoli for SEVEN-ELEVEN JAPAN CO., LTD. and pumpkins for M.V.M Shoji Co., Ltd.

flavored sweets, cellophane noodles, and a steamed fish paste known as Initially I was a little worried because it was our first go at connecting production with organization Our kamaboko. I was appointed to the Kyushu Business Station(Fukuoka City) product development, but I found the process of building a system in cooperation with in 2017 and was in charge of sales of sweet potato starch mainly to food other businesses fairly rewarding. Above all, when I found the actual finished product in manufacturers in the Kyushu area. Kagoshima and Miyazaki often get hit store, and when I told the producers just how well things had gone and talked about by typhoons and heavy rain. These natural disasters affect the sweet pota- production for the next season, I felt a great sense of achievement. to crops, and on many occasions badly disrupted the supply of starch to Product supply proposals for processing and business can be achieved only by coop- food manufacturers. From the fiscal year 2020 I have been put in charge of erating in production areas nationwide and by providing stable supply. If we can continue marketing across the country so I am now working to further expand de- to do this, I believe it will lead to a more stable income for producers. We will continue to mand, not only domestically, but also overseas, such as with exports of cooperate with everybody concerned and proactively propose nationwide processing sweet potato starch to Korea for cold noodles and cellophane noodles. and business initiatives to production centers in prefectures across the country. The Aizu Vegetable Facility, a regional vegetable collection and shipping facility jointly A barley field in Japan funded and operated by Fukushima Prefectural Headquarters and JA Aizu Yotsuba

28 ZEN-NOH REPORT 29 Fertilizer Business Agrochemicals Fertilizer Business Page Business Agrochemicals Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

In the fertilizer business, ZEN-NOH supplies fertilizers pur- In the agrochemicals business, we purchase agrochemical prod- chased from fertilizer manufacturers to farm producers Efforts to Secure Stable Supplies ucts from manufacturers and supply them to producers through Development of New Agrochemicals through KEIZAIREN and JA. We also import fertilizer raw mate- prefectural KEIZAIREN and local JA. We also play a role in such of Fertilizer Raw Materials In order to develop new agro- rials and produce Bulk Blending fertilizers, to contribute the things as; reducing material costs by providing products and ship-

chemicals required for agricultur- environment Our steady supply and price stability of fertilizer. ping in larger sizes directly to producers, establishing effective pest ZEN-NOH has been working to secure stable supplies of fer- al productions, we are working * Bulk-blending (BB) fertilizer: A fertilizer mixed two or more granular fertilizer materials to control methods by developing new active ingredients and stream- produce mixtures containing nitrogen, phosphorus, and potassium and other plant nutrients, tilizer raw materials by building ties with overseas suppliers with agrochemical companies. In September 2018, we obtained lining logistics to ensure a stable supply. as opposed to compound fertilizers which contain two or more nutrients in each granule. through the long-term business relations. ZEN-NOH has also the registration of Pyraxalt, an active ingredient jointly devel- invested in Wengfu & Zijin Chemical Industry Co., Ltd., a compa- oped with DuPont Production Agriscience K.K. which is highly Main Distribution Channels for Fertilizer in JA Group Main Distribution Channels for Agrochemicals in JA Group ny established in Fujian Province, China in 2012, to procure effective against planthoppers. The products containing Pyrax- high-quality ammonium phosphate stably. alt have been sold since 2019. Overseas suppliers Agrochemical manufacturers * Plant hoppers: Important rice pests prevalent in western Japan and the Kanto region.

Technology and information Validation Trading companies ZEN-NOH initiativesOur Joint development of Integrated Pest Management agrochemicals (IPM) Initiatives Fertilizer manufacturers JA Group A panoramic view of Wengfu & Zijin Chemical Industry’s plant BB fertilizer plants Wholesalers ZEN-NOH and KEIZAIREN To address the problem of resis- Distribution Making Soil Based on Soil Testing Materials stores tance to chemicals, ZEN-NOH is Wholesalers ZEN-NOH and KEIZAIREN encouraging more use of Banker Agrochemical technology Sheets®, protection using natural In an effort to prepare soil and improve the proper use of fertil- Farming information predators which does not rely sole- JA ization based on soil testing, ZEN-NOH has set up nine regional soil

JA ly on agrochemicals. In particular, businesses Our analysis centers nationwide to carry out soil analysis work across as there are few chemicals that are prefectures. ZEN-NOH analyzes about 110,000 samples annually highly effective in controlling spider Producers at 20 sites nationwide, which includes its prefectural analysis cen- Producers mites in strawberries, we are work- ters, contributing to a reduction in total production costs. ing on creating an effective control program that combines natural en- emies and chemical pesticides. Interview * The “Bunker Sheets®” are used together with packs containing natural enemies to Interview Shiga Regional Soil Analysis Center Regional Distribution Center protect them from the effects of temperature, humidity changes, watering and Aiming for a Fertilizer sprays of chemicals, etc. Hiroshima Regional Gunma Regional Soil Analysis Center Work and Future Initiatives activities PR/SR Business to Help Soil Analysis Center Fukuoka Regional Ishikawa Regional Iwate Regional Soil Soil Analysis Center Soil Analysis Center Analysis Center Joined in 2010 Producers and JA Crop Production Division, Kyushu Development of Generic Agrochemicals Agricultural Materials Business Station Chiba Regional Soil Business Promotion Dept. Joined in 2011 Analysis Center Crop Production Division, East KIKUCHI Naotaka To reduce the agricultural production costs, we are working on the Japan Agricultural Materials Business Station I am in charge of the operation of ZEN-NOH Northern Kyushu Regional Distri- development and the widespread use of generic agrochemicals. In 1995, Business Promotion Dept. National Soil MITSUI Daiki Analysis Center bution Center, which is responsible for purchasing agrochemicals. we launched Penncozeb (fungicide) as the first generic agrochemical in This center was established to streamline the distribution of agrochemicals in the Mie Regional Soil Japan, and then in 2003 released J-Ace(insecticide). Since then, we have The East Japan Agricultural Materials Business Station is in charge of the Kanto Analysis Center : Prefectural Soil Analysis Centers four northern prefectures of Kyushu (Fukuoka, Saga, Nagasaki, and Oita), and it manag- Koshinetsu area. The Business Promotion Section is working to promote various Soil Analysis Centers Across the Country es the purchase, the inventory management of agrochemicals, preparing and shipping. continued to develop and make these agrochemicals widely available. projects centered on fertilizers, agrochemicals, and farming in order to raise produc- In the operation of the center, it is important to reduce costs by improving op- In April 2018, we established ZM Crop Protection Corporation, a joint organization Our ers’ incomes and promote agricultural production. The workplace is one where each erational efficiency. For this reason, we are working to visualize operations by person is in charge of a prefecture and has many opportunities to directly interact analyzing forklifts traffic lines and measuring product picking times, and we are venture with Mitsubishi Cor- with producers and JAs. Seeing how each project is getting on in terms of agricultur- also working to streamline operations by improving purchase and operating poration, responsible for the al production makes me more motivated and improves my skill set. procedures in the warehouse. One of the initiatives in the fertilizer business is that of autonomous reforms. For In addition, the distribution situation is extremely difficult due to the shortage of registration and manufac- this we are focusing on establishing and expanding new joint purchases that lead to drivers, and the importance of regional distribution centers are becoming in- turing of our agrochemical lower prices and the use of pallets for building an efficient distribution system. In all creasingly more important. In the future, we will work to improve efficiency in products. our work we are always thinking about who and what the job is for so that we can shipping by using pallets and maximize economies of scale, consolidating the contribute to farms and producers. items we handle and aiming for a more stable supply to producers. Inside a soil analysis center Local training on soil preparation

30 ZEN-NOH REPORT 31 Agricultural Machinery Horticultural and Packaging

Agricultural Machinery Horticultural and Packaging Business Business Page Materials Business Materials Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

In the agricultural machinery business, machinery used for In addition to quality control of horticultural materials and pack- farming, such as tractors, rice transplanters, and combines, are Integrated Agricultural Machinery aging materials (bags and cardboard boxes, etc.), the horticultural Widespread Use of Biodegradable Mulch sourced from manufacturers and supplied to producers and packaging materials business is, in an effort to reduce produc- Business Through JA and ZEN-NOH Since biodegradable mulch decomposes naturally in the through KEIZAIREN and JA. tion and shipping costs, developing original ZEN-NOH products,

field after being mixed into the soil, it generates no waste plas- environment Our ZEN-NOH also supports producers’ farming by helping to and importing products, such as Flexible intermediate bulk con- JA and ZEN-NOH are consolidating their management resourc- tic, helping to protect the environment. And because there is no build after-maintenance systems, including educating person- tainers (FIBCs), directly from overseas. The business also contrib- es, such as their human resources and facilities, thereby promot- need to collect the mulch after harvesting, it also helps to re- nel through skills training and setting up regional parts centers. utes to the environment in the agricultural field with the wide use ing an integrated, jointly run, agricultural machinery business. duce producers’ workloads. As of April 2020, 74 JAs in 19 prefectures nationwide have been of biodegradable mulch and packs using plant-derived resin. Main Distribution Channels for Agricultural Machinery in JA Group integrating operations. By creating a support system that is closely linked to the region and improving technical capabilities, ZEN-NOH Main Distribution Channels for Horticultural and Packaging Materials in JA Group Agricultural machinery manufacturers is working to improve the services it provides to producers. Horticultural and packaging materials manufacturers

Manufacturer-aliated initiativesOur sales companies ZEN-NOH Wholesalers ZEN-NOH

KEIZAIREN

KEIZAIREN

JA

JA Our businesses Our

Producers

A jointly managed agricultural machinery center Producers

The Kietaro Z biodegradable mulch being used in a field Interview Regional Parts Centers Reducing Costs Interview Sustained use of agricultural machinery leads to lower pro- Direct Import of Flexible Containers with Daily Proposals Helping to Streamline

duction costs. For this reason, ZEN-NOH has set up regional activities PR/SR Joined in 2011 parts centers around the country, serving territories that cross Agricultural Product ZEN-NOH directly imports FIBCs from overseas for use in Shiga Prefectural Headquarters, domestic production and distribution sites. Furthermore, in or- Agricultural Materials Division prefectural boundaries, to enable quick and efficient machinery Distribution Agricultural Machinery Dept. repairs and maintenance. der to ensure product safety, ZEN-NOH is working on quality HAMANAKA Yosuke Joined in 2008 control with the installation of a testing machine at its Agricul- Crop Production Division, Currently, I am in charge of planning for agricultural machinery, in an Materials Dept. tural Research and Development Center. effort mainly to reduce production costs. Agricultural machinery is essen- HAMADA Shinsuke tial for modern farming, but it accounts for a large part of production costs, so reducing the costs of agricultural machinery is vitally important in The logistics of agricultural products is now entering a period of change. Because of a achieving low-cost agriculture. shortage of human resources and an aging population in recent years, work style re- Specific efforts we are doing in a bid to make this happen include a focus forms are needed in the transportation industry. The distribution of agricultural products,

on promoting the joint purchase of low-priced tractors and the joint use of often with heavy loads handled manually, is starting see people shy away from the in- organization Our agricultural machinery. In particular, for joint tractor purchases, the team dustry. If things go on as they are, it may not be possible to transport agricultural prod- in charge of promoting this initiative have developed collective promotion ucts from the production site to the place of use. We, on the other hand, are working to activities in the prefectures after sharing feedback which they have pains- streamline logistics and reduce workloads through a number of initiatives. These in- takingly gathered from farm locations. Through these promotional efforts, clude promoting better pallet transportation together with the Fresh Produce Division producers have been gradually getting to know the various benefits which (Vegetable & Fruit) by switching to cardboard boxes with dimensions that match the size has led to increased joint purchases. of the pallets, and working with the Rice Division to propose FIBCs that cut down wasted In the future, JA Agricultural Machinery staff will continue to plan prod- space when loading trucks. These efforts reflect ZEN-NOH’s comprehensive strength in ucts that can be recommended with confidence in terms of price and qual- dealing with both the packaging materials and what’s inside them. I would like to contin- ity, contributing to reduced production costs for all producers. ue to propose the best materials in cooperation with all the related departments. The Tohoku regional parts center FIBCs and testing machine

32 ZEN-NOH REPORT 33 Facilities and Agricultural Livestock Product Sales

Residential Business Business Livestock Product Sales Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

In the facilities and agricultural residential business, ZEN-NOH contrib- The livestock product sales business is engaged in the business of deliver- utes to the creation of safe facilities and buildings, such as farm buildings, More Sophisticated and Diversified ing beef, pork, poultry, eggs, and processed foods made from these products, to Farm Fresh Business direct sales outlets and stores, as well as rental housing constructed by JA consumers. Group companies are responsible for sales throughout the country Agricultural Facilities with Specialist Engineers The JA Group is promoting and its members, by acting on the client’s behalf to support all the client's in order to respond quickly to the ever-changing food scene. In addition to its

a sustainable fresh-from-the- environment Our work, from planning and design, to construction management and delivery. There are a wide range of demands for agricultural facilities such domestic business, ZEN-NOH also delivers safe and great tasting Japanese farm business. In collaboration as the need for better processing capacity, the need to save labor and livestock produce with a focus on Wagyu beef, to dining tables around the world. with the JA Kagoshima KEIZAI- The Process of Working on Client’s Behalf make efficiencies, and reduce the costs of repair and maintenance. 94 REN and A-Coop Kinki Co., Ltd., ZEN-NOH certified construction managers and 214 nationally qualified Main Distribution Channels for Meats Handled by ZEN-NOH JA ZEN-NOH Meat Foods Co., Client architects plan, design, inspect, and manage construction work to sup- Member & JA Ltd. is delivering Chamiton, a port JA with the construction of facilities that operate smoothly. Producers Entrusts work brand of pork produced by pig JA farmers in Kagoshima, to con- ZEN-NOH sumers in the Kansai region. ZEN-NOH (prefectural headquarters) and KEIZAIREN Managing KEIZAIREN Agent initiativesOur Registered architects JA ZEN-NOH Meat Foods Co., Ltd. Topics Wagyu Koshien

Bid or competitive quote Supermarkets, co-ops, processing manufacturers, etc. First held in January 2018, the Wagyu Koshien is a competi- Consumers tion in which students from agri- Contractor A B C cultural schools across Japan compete to produce the best Main Distribution Channels for Poultry Handled by ZEN-NOH quality Wagyu beef from cattle Main Work as Managing Agent A construction manager making an inspection at a fruit and vegetable collection

○ Installation support ○ Basic design creation ○ Final design creation and shipping facility they have raised themselves, and compete on things in their everyday businesses Our Integrated business and review ○ Support for selecting contractor ○ Construction work. Through this initiative, ZEN-NOH is contributing to; 1) support for management ○ Construction inspection ○ Comprehensive Producers compensation for construction work future farmers and encouragement to get into farming, 2) the creation Asset Management for Members Miyazaki Kumiai Kagoshima Kumiai Sumita Foods of a farmer’s network, and 3) improvements in fattening techniques. Chicken Foods Chicken Foods Corporation in Collaboration with JA Corporation Corporation ZEN-NOH Chicken Foods Corporation Interview In order to support members’ asset management, including the effec- Setting Up Agricultural Interview tive use of land, home builds and remodeling, as well as inheritance and Supermarkets, co-ops, processing manufacturers, etc. Contributing to Safe and Secure Pork tax measures, ZEN-NOH cooperates with JAs mainly in the metropolitan

Infrastructure Through activities PR/SR area, consulting on various matters related to members' land and build- Consumers Distribution for the Benefit the Construction of Facilities ings. For the construction and remodeling of rental housing and detached of Producers and Customers Joined 2012 homes, ZEN-NOH works on behalf of the client to handle everything from Facilities & Asset Management Division, construction inspections to delivery with the clients’ needs in mind. Joined 2017 Facilities and Agricultural Residential Dept., Architect (First-Class) Main Distribution Channels for Eggs Handled by ZEN-NOH JA ZEN-NOH Meat Foods Co., Ltd. KAMAKURA Yuto (on loan from) KONDO Azusa I acquired a qualification as a first-class architect during the 6 years while I was at the Tohoku Producers Regional Business Station and have since been involved in design and supervision work. This I am currently in charge of procurement and sales of domestic pork at JA ZEN- Division not only handles general buildings such as offices but also takes charge of a wide range JA NOH Meat Foods Co., Ltd. I majored in livestock farming when I was a student, of agricultural facilities such as grain drying and preparation facilities, and fruit and vegetable and joined ZEN-NOH with the desire to contribute to Japanese agriculture

collection and shipping facilities. It is involved in the production and distribution of agricultural through the business of livestock. Many people are involved in the process of organization Our products through these types of facilities. Premium retirement homes ZEN-NOH (prefectural headquarters) and KEIZAIREN turning a live pig into meat; producers, processors, sellers, distributors, etc. I am ZEN-NOH has built up a wealth of expertise in agricultural facilities and rental housing, mak- with long-term care now also involved in the distribution and sale of pork to supermarkets. The most ing it possible for us to propose construction projects from the client’s perspective. I now work JA ZEN-NOH Tamago Co., Ltd. rewarding thing about this job is when customers say that the pork, which I have at the headquarters where, by utilizing my experience at my previous workplace, I am involved been a part of through my work, is delicious. But if the customer is not satisfied in responding to issues at each site and planning new initiatives. I think that ZEN-NOH's strength with the taste or quality, we must tell the producer. It can be difficult at times, but is that it is able to share information and technology in this way across entire organization. Supermarkets, co-ops, wholesalers, processing manufacturers, etc. I am working hard with the producers to deliver the best possible pork to the Agricultural facilities are an essential infrastructure for delivering agricultural products such customer. I want to continue to deliver safe, secure and delicious pork carefully as rice, vegetables, and meat produced by farmers for the dining tables of the Japan. As such, I Consumers raised by producers to many people, bringing a smile to the faces of customers want to continue to help build better facilities and contribute to Japanese agriculture. and producers alike. Retail facilities

34 ZEN-NOH REPORT 35 Livestock Production Dairy Business Business Livestock Production Business Page Dairy Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

In the livestock production business, raw feed materials are pro- Dairy department adjusts supply and demand of raw milk nationwide, cured from overseas grain producing regions and domestic feed Supplying Non-GMO Corn aiming at stabilization of supply chain for fresh / delicious milk and dairy The Adjustment of Supply and Demand suppliers. Compound feed is then produced at Group company feed products. Also, making our efforts to enhance demand of milk, butter and In response to consumer needs such as those from the Co- for Raw Milk and Dairy Products plants and supplied to producers through JA KEIZAIREN and JAs. skim milk powder to distribute to food and beverage companies.

op, the ZEN-NOH Group separates and manages post-harvest environment Our Furthermore, the department applies input to milk production to free non-genetically modified organism (PHF/NON-GMO) corn In response to the seasonal imbalance between supply and demand of produc- Main Distribution Channels for JA Group Compound Feed achieve long-term stable management of dairy farmers and milk/dairy and supplies it from production areas to livestock producers in tion and consumption in different prefectures, raw milk is transferred, in the sum- products processers. mer, from the main raw milk production areas of Hokkaido, Tohoku, and Kyushu to Raw materials Compound feed Japan. CGB Enterprises signed a long-term seed supply agree- consumption areas where it used as milk for drinking. In the winter, raw milk is pro- Domestic Overseas ment with seed companies in September 2019 to secure NON- Main Distribution Channels for JA Group Raw Milk raw-materials agricultural ZEN-NOH cessed into dairy products such as butter and skimmed milk powder that can be Grain Group GMO seed supply until 2025. markers cooperatives preserved, which enables milk and dairy products to be delivered in a stable manner. Producers Raw Milk Supply and Demand Across Prefectures ZEN-NOH JA and RAKUNOKYO Regional adjustment of raw milk between production areas Our initiativesOur ZEN-NOH (prefectural headquarters) and between dairy companies is necessary every day and KEIZAIREN to protect against the imbalance between supply and Cooperating Regional feed demand caused by the seasons and weather plants companies Designated organizations Raw milk production Amount processed into milk

ZEN-NOH KEIZAIREN and JAs Dairy companies

Retailers, etc. businesses Our Producers Signing the NON-GMO seed supply agreement Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Consumers Lack during summer Surplus in winter Streamlining the Compound Feed Production and Supply System Interview Interview Hokuren Cooperative Feed Mills Co., Ltd. and Snow Brand Supporting the Milk Supply Chain Stable Supplies of Raw Feed Seed Co., Ltd. have established a joint venture which specializes

with Nationwide Adjustment activities PR/SR by Utilizing ZEN-NOH in the production of compound feed, thereby streamlining the production and supply system for compound feed in Hokkaido. of Supply and Demand In response to the increased raw milk In response to the decreased raw milk Overseas Subsidiaries A groundbreaking ceremony was held in December 2019 start- demand for drinking, raw milk is demand for drinking, raw milk is Joined 2005 transferred from main milk transferred from production areas to ing construction of the new factory. The factory is scheduled to Dairy Division, Raw Milk Dept. producing areas to areas of dairy product processing plants and Joined 2012 fluid milk product consumption processed into dairy products ZEN-NOH Grain Corporation start operations in December 2021. TOGAWA Yoshiko that can be stored for a long time (on loan from) SANO Ren My job involves sufficiently adjusting the supply and demand of the raw milk produced by dairy farmers while carrying out sales mainly to dairy companies. ZEN-NOH Grain Corporation provides stable shipments of grains, oil Raw milk is an agricultural product whose supply and demand changes daily seeds, and other feed ingredients. Our mission is to provide livestock pro- due to many factors such as weather, the day of the week, and events, in addition Commercial Milk Sales ducers in Japan with a stable supply at competitive prices. Amid growing to seasonal and regional factors. Furthermore, raw milk cannot be distributed at concerns about slowing distribution due to unstable weather in recent room temperature and cannot be stored as it is, so it’s essential to adjust supply ZEN-NOH is working to expand milk organization Our years as well as the rising global demand for grain due to population and demand every day. Understanding well the supply and demand of raw milk growth and growing livestock demands, we are taking advantage of our and supporting the milk supply chain from producers to consumers is a major role demand by commercially selling milk to connections with CGB Enterprises (an inland grain collection company) of the ZEN-NOH dairy business. beverage manufacturers as a raw mate- and other companies to be one of the first to share information about the In recent years, we have been doing school visits for students and holding social United States with Japan. We are continually talking with our partners to events for female dairy farmers, with the idea to bring the power of women into the rial for canned coffee and bottled drinks. secure stable supplies to Japan. dairy industry in order to strengthen its production base. I always get a lot of energy In collaboration with drink companies, The distribution of agricultural products changes every day which keeps from the dairy farmers I meet at these events. With that thought, I will continue to ZEN-NOH also holds its “Dairy Dream” me very busy, but I feel proud to be at the heart of grain distribution. I’ll work with our business partners, striving to deliver safe and secure milk to the continue to do my best to help Japanese producers. dining tables of Japan. school visits and social events to foster a A rendition of the Tomakomai Cattle Feed Mill better understanding of dairy farming. “Dairy Dream” school visit

36 ZEN-NOH REPORT 37 Energy Business Life Support Business Energy Business Page Life Support Business Page About ZEN-NOH About

ZEN-NOH’s Role ZEN-NOH’s Initiatives ZEN-NOH’s Role ZEN-NOH’s Initiatives

The energy business delivers stable supplies of energy The life support business provides food, daily necessities, and ser- needed for our daily life. The electricity business supplies elec- Solutions for Best Use of Home Energy vices which are necessary for those living in rural communities. JA Farmers tricity to JA Group facilities and JA member households under (Electricity, LP Gas, Kerosene) In addition to operating A-Coop stores, ZEN-NOH also offers a wide the JA Denki brand name. The petroleum business stably sup- range of other businesses, such as: JA-Kurashi-no-Takuhaibin, a deliv- ZEN-NOH and A-Coop consider A-Coop supermarkets to be not just key facilities for its members, but also as places that environment Our plies fuel oils such as gasoline through JA-SS service stations. ZEN-NOH strives to help members lower their home energy costs ery service allowing users to order everyday goods online; joint pur- sell domestic agricultural and livestock produce. In cooperation And the gas business supplies LP gas under the brand name by developing a new range of options that adds electricity to ZEN- chases on pre-orders; food delivery and buyer's clubs that deliver with local JAs, ZEN-NOH is opening a number of JA Farmers Kumiai Propane. NOH’s petroleum and LP gas services. groceries and other items to people’s homes on a regular basis; as stores where agricultural produce is sold directly from A-Coop ZEN-NOH is also developing home energy supply models that well as, a funeral business and a home medical supplies business Main Distribution Channels for JA Group Energy supermarkets. There are now 28 such stores across the coun- combine various new energy-saving technologies (such as solar providing support to members. ZEN-NOH is also working to commer- try. (As of the end of June 2020) power, storage cells, V2H, and fuel cells) with different heat sources. cialize new living-related fields, including a farm stay business that Domestic Suppliers Oversea Suppliers connects cities with rural areas helping with regional revitalization.

Purchase of surplus Farming facility electricity Main Distribution Channels for JA Group Daily Necessities JA facility

Member’s household Kumiai Propane initiativesOur ZEN-NOH Kitchen Hot water Heating Lighting & Equipment Fuel oil Electricity & Fuel Household goods manufacturers Energy-saving solutions New technologies Solar Storage power cells V2H Fuel cells ZEN-NOH KEIZAIREN * V2H: Vehicle to Home - A system to effectively use electric power stored in an electric vehicle for use in the home Energy companies in JA Group Maintaining and Strengthening Lifelines KEIZAIREN JA JA Group Farm produce being sold directly from an A-Coop supermarket

A-Coop companies businesses Our Supplies of petroleum and LP gas serve as a lifeline for farm- JA ers, members, and those living in rural communities. The petroleum business is improving efficiency in distribution Members and consumers Topics Delivering Seasonal Delights and creating more self-service service stations to ensure stable Members and consumers from Across the Country Every Month fuel supplies, while the gas business is promoting a safety system The Shunsen Club that checks gas usage of members 24 hours a day, 365 days a year. In the life support business, ZEN-NOH has been working on the Shun- Interview sen Club, a membership-type delivery service that brings seasonal fla- Interview vors from all over the country to people’s homes every month of the year.

Delivering the Great Taste of activities PR/SR JA Denki The great thing about the Shunsen Club is that people can enjoy the Domestic Agricultural and fruits and flowers produced by all the different JA, as well as processed makes Member’s Livestock Produce Through Products foods using domestically produced ingredients, etc. without having to Lives better leave their own home. ZEN-NOH will continue to deliver the season’s best Joined 2010 delights to dining tables across the country to help further consumption of Joined 2019 Life Support Division, Energy Division, Store Business Dept. domestic agricultural and livestock products. Electricity Dept. KUDO Shinsuke YAMADA Momoe As a part of the Store Business Section, I am involved in purchasing and product I work to promote JA Denki for JA members to more widely used. Power Supply for JA Member Households development for A-Coop nationwide.

With the removal of restrictions on retail electricity sales, people can In terms of purchasing, we are creating economies of scale by procuring prod- organization Our choose any electric power supplier freely. Therefore we started JA Denki ucts on a nationwide scale in collaboration with the A-Coop companies across the business in order to help cut member’s farming and living costs. Following the complete removal of restrictions on retail sales of country. We are working on to let our members use electricity safely at a great electricity from April 2016, ZEN-NOH began supplying electricity to JA On the product development side of things, we are developing A-Coop branded price (through their daily work) by using JA Denki. products, a private brand of the JA Group. I believe that products are an important In dealing with electricity, something that is so vital to our daily lives, I find Group facilities in order to cut energy costs for JA members’ farming. communication tool which can connect consumers with the JA Group. it very rewarding to be able to directly relate to and contribute to the lives In addition, since December 2018, ZEN-NOH has been supplying electricity I’ll do my best each and every day in both purchasing and product development of our members. (brand name : JA Denki) to JA mem- to make consumers aware of Japan’s great tasting agricultural and livestock prod- I continue to meet the needs of our members and try to make JA Denki ucts, centered on domestic and local production for local consumption, in pursuit of more chosen. bers’ households with the aim of re- the qualities that make JA so great. ducing their farming and living costs.

38 ZEN-NOH REPORT 39 ZEN-NOH is advancing technological development that supports producers’ farming, ZEN-NOH’s Research and and is also focusing on basic research and human resource development with an eye on the future. ZEN-NOH is working on research and development that will lead to improved agricultural productivity not just by collaborating Development Department with research institutes, but by cooperating with other companies, public research institutes, and venture companies. About ZEN-NOH About

Central Research Institute Agricultural Research and Development Center for Feed & Livestock Institute of Animal Health As a research facility that aids in the management of livestock farms through inno- The Institute of Animal Health is the department that strives to prevent Agricultural Products Development Section Fertilizers Research Section vative products and technologies, the Central Research Institute for Feed & Livestock is infectious disease of livestock. It includes a research and development sec- involved in the commercialization of compound feed and superior breeds and livestock tion that works on product development of vaccines and feed supplements The Agricultural Products Development Section develops new varieties of The Fertilizers Research Section is working on the development production materials, the development of technologies related to nutrition manage- and basic research on animal diseases. It also has a diagnostic center, rice, vegetables, spray mum, and other crops. The “Harumi” rice variety developed of labor-saving, low-cost technologies for farmers. And the Section ment and productivity improvements, holding training courses, and other activities. which conducts health inspection of livestock and provides production environment Our by ZEN-NOH and great-tasting “Angelle” baby plum tomato are now being grown has applied for patents of fertilization method utilizing irrigation Its recent achievements include 1. development of poultry feed to maximize guidance (called “clinics”) and five field clinics across Japan. The diagnostic increasingly more across the country. The R&D lab also develops cultivation tech- water flow in paddy filed and of nursery bed soil for rice plants. The poultry performance based on breeding improvements, 2. development and pro- center tests about 200,000 specimens per year, making it indisputably the nologies to increase productivity, developing and promoting such technologies as Section also regularly carries out quality checks and new develop- motion of pork varieties offering outstanding flavor and productivity and of feeds for largest livestock health inspection fa- subsurface drip irrigation for leeks and cultivation by direct seeding for onions. ments so that farmers can safely use fertilizer and nursery soil. them, 3. development of technologies for improving productivity and saving labor in cility in Japan. Its field clinics based on wagyu and dairy cattle using ICT equipment, the results of inspection are conduct- and of low-cost breeding systems and feeds, 4. ed by veterinarians assigned to five breed improvements through genome analysis, sites across Japan— Hokkaido, north and 5. development of new methods of analysis Japan, east Japan, west Japan, and of nutrient content of feeds, raw materials, etc. Kyushu—greatly contributing to farm-

Research and development to meet the initiativesOur Feeding trials with broiler birds ers’ productivity improvements. needs of producers and consumers “Harumi” developed by ZEN-NOH A leek drip-irrigation kit Fertilization method utilizing irrigation Testing how well paddy-field rice seed- water flow in paddy filed ling soil works with rice transplanters Agrochemicals Research Section Pesticide Residue Inspection Section The ET Center’s ET activities The Agrochemicals Research Section is working The Pesticide Residue Inspection Section tests on its fight against hard-to-control pests and weeds, ET Center Artificial insemination fruits and vegetables distributed by the JA Group Ordinary carrying out tests on how to use less labor-intensive birth for chemical residues. In 2015, it earned Good Lab- agrochemicals, as well as jointly developing new agro- ET (Embryo Transfer) technology is used to transfer an embryo Embryo Transferred to Wagyu calves oratory Practice (GLP) certification for agrochemi- collected wombs of born from chemicals in partnership with agrochemical compa- from one cow to another for birth. The ET Center is a pioneer in this from cow dairy cattle dairy cows businesses Our

Artificial Production efficiency cals. The lab also conducts residue tests on crops Analyzing residual chemicals

technology, and it boasts world-leading ET technologies. To increase insemination up to 21 times*

nies. The lab is also working to promote wider-use of improved by to gain domestic agrochemical registration. on fruits and vegetables integrated pest management (IPM) in combination Control of spider mites by production of wagyu beef, an important asset of Japanese agriculture, predatory mites using “Bank- the ET Center helps to support the wagyu production through ET using with various pest-control methods such as biological er Sheet®” (brand name) ET birth Embryo- control. Consumer Goods Quality & Control Section Holstein cows. providing cow The Center is also focusing on development of new technologies Using the wombs of dairy cattle makes it The Consumer Goods Quality & Control possible to produce large numbers of wagyu and new products as well as offering special training programs (com- cattle from a single wagyu cow Section handles quality control (setting quality * 5 times/year 7 calves/time 60% 21 calves/ Energy Research & Training Section monly called as Hanshoku Gijuku) intended to train the younger gen- Number of times/year Number of embryos Embryo year standards, product inspection, plant inspec- embryos collected collected conception rate eration to be professionals in ET. from one cow each time The Energy Research & Training Section con- tion,labeling inspection,specificationscon - ducts quality testing of gasoline and other petro- trol) to support the safety and reliability of activities PR/SR leum products. It also provides support for earn- A-Coop brand products and others. ing national qualifications and improving It also carries out efforts to promote under- Quality control supporting Topics workers' skills through activities such as training Quality testing of petroleum standing of product knowledge among mem- product safety and reliability AgVenture Lab sessions related to liquified petroleum (LP) gas. products bers of JA women’s associations and others. The AgVenture Lab was established in May 2019 by a group of eight nationwide JA Group federations. Agricultural Materials, Machinery & Facilities Research Section Management and Education Section AgVenture Lab’s purpose is to work on open innovation The Agricultural Materials, Machinery & Facilities The Management and Education Section together with start-up companies with the best techno- Research Section activities include quality control for holds training sessions on individual topics logical capabilities and ideas to solve social issues in organization Our materials like cardboard boxes for fruits and vegeta- such as agribusiness and materials for JA food, agriculture and regional revitalization. bles and plastic used in greenhouses, developing ma- Group staff. Since the Agricultural Research The JA Group supports start-up enterprises at this terials to keep fruits and vegetables fresh, and check- and Development Center opened, it has trained center of activity, working in various ways, such as with ing the performance of new products. a cumulative total of more than 140,000 train- its JA Accelerator program to conceive new innova- It also holds basic training sessions on agricultural ees. Since FY2015, it has held training sessions tions, to create value and open the minds of JA Group The 1st JA Accelerator Quality checking of cardboard officers and employees. poster session equipment and conducts certificate examinations for boxes using pressure testing on cultivation methods for those involved in A training session on cultiva- JA Group agricultural equipment service technicians. equipment development of producing regions. tion methods

40 ZEN-NOH REPORT 41 SR activities Social Responsibility As an active member of local communities, ZEN-NOH employs a proactive approach to social responsibility. Covering a wide ZEN-NOH Cup All-Japan Table JA ZEN-NOH WCBF youth range of areas from food and agricultural education through Tennis Championship Tournament baseball lessons Social Responsi- sports and the environment, these activities contribute to building the future of our communities. They include not only support for (Hopes Cub Bambi Division) ZEN-NOH is a special sponsor of these lessons, organized by professional and amateur sports, but also activities to deepen ed- the World Children's Baseball Foundation (WCBF), which is ucation on food and agriculture for children, who will form the chaired by OH Sadaharu. Instructors are former professional bility Activities Japanese society of the future, and welfare and cultural activities. baseball players in Japan.

Supporting the activities of athletes by providing them with Japanese foods ZEN-NOH About Supporting sport All-Japan Table Tennis Championship Table tennis Tournament (Cadet Division) As an official sponsor of the Japanese national table tennis team, ZEN-NOH supports members of the Japanese national table tennis team during overseas tours by providing them with Japanese food. ZEN-NOH also sponsors table tennis competitions, both in Japan and overseas, and helps to Nutrition education project for publicize Japanese agricultural and livestock products by providing secondary awards and organiz- ZEN-NOH/“Hagitomo” ing exhibition booths. Table tennis player ISHIKAWA Kasumi, who is under exclusive contract to ZEN- high-school baseball players NOH, competes widely at major competitions, both domestic and international, and plays a leading swimming lessons environment Our role in the Japanese women’s national team. Together with Ritsumeikan Uni- Taught by former Japan National versity, ZEN-NOH is carrying out a Team competitive swimmer HAGIWARA joint nutrition education project for Tomoko, who competed in the Sydney high-school baseball players over Olympics, these swimming lessons are the three-year period FY2018- intended to teach the joy and impor- FY2020. This project aims to develop nutrition education programs tance of a good diet through sports. for high-school baseball players and other athletes by supplying rice to four schools partnering in the study and researching the ZEN-NOH × Unicycle Competition advantages of a diet centered on rice as well as cooperating with

local JAs in activities to contribute to the community. initiativesOur ZEN-NOH Cup Japan Elementary ZEN-NOH provides sponsorship for the ZEN-NOH X Unicycle Curling  Competition, which is organized by the Japan Unicycling Asso- ZEN-NOH is an official sponsor of the Japanese national School Curling Championships ciation. By providing this support, ZEN-NOH aims to contribute curling team. Within Japan, ZEN-NOH sponsors the Japan Curl- (Winter Chibi-lympics) to the physical and emotional growth of the many children who ing Championships and the ZEN-NOH Japan Mixed Doubles love unicycles, and At the ZEN-NOH Cup Japan Ele- Curling Championships, etc., and also provides secondary help them to real- mentary School Curling Champion- awards and food for the competitors’ half-time break. ZEN-NOH ize their dreams. ships (Winter Chibi-lympics), elemen- also provides support for members of the Japanese national tary school curling teams compete for curling team competing overseas, by supplying them with Jap- businesses Our the title of Japan Number One. This anese food. event was held for the second time in December 2019, with around 40 com- Food and agricultural education petitors from all over Japan taking part in a fierce contest. Rice Paddy Organism ZEN-NOH parent-child cooking classes Food Support for Athletes Survey ZEN-NOH Minna no Kodomo cooking classes ZEN-NOH is carrying out the Rice Pad- ZEN-NOH hosts parent-child cooking classes using fresh domestic Competing Overseas dy Organism Survey in conjunction with farm products and cooking classes in which children with disabilities ZEN-NOH Chibi-lympics When Japanese athletes represent their country on overseas expedi- JAs, producers, consumers, and children participate, in cooperation with various ZEN-NOH Group companies. This activities PR/SR : Spring Chibi-lympics tion tours, ZEN-NOH provides them with Japanese food in the form of Miso nationwide, arranging activities to enable program allows children to take on the challenge of preparing a bento soup, packaged rice, etc. as well as using ZEN-NOH’s overseas network to participants to learn, through the five box lunch without relying on their parents, to enhance their understand- ZEN-NOH is a special sponsor of the ZEN-NOH Chibi-lym- provide them with Japanese cuisine (“washoku”) made using Japanese senses, about the deep connection be- ing of and interest in the importance of food and food ingredients. Implemented: pics, held every year on May 5, Children's Day. Held at Nissan rice and Japanese wagyu beef in the region where they are competing, tween the environment and farming and In these classes, employees of ZEN-NOH Group companies and ZEN-NOH 87times Stadium in the city of Yokohama and other venues, the ZEN- and with “omusubi” rice-balls to provide additional food energy, so that the the importance of conserving biodiversity. itself deliver classes on Japanese agriculture and ingredients along with food Total participants: NOH Chibi-lympics on May 5, 2019 featured the best efforts of quizzes, communicating to participants the importance of agriculture and food. 2,609 athletes can achieve an even better performance than usual despite being * FY2006–FY2019 4,900 young athletes in front of 22,000 spectators. overseas. In FY2019, we provided food support for 16 major competitions. Implemented: As well as the food support that ZEN-NOH provides for Japanese ath- 669times

Total participants: ZEN-NOH parent-child agricultural experience tours organization Our letes during their overseas tours, ZEN-NOH also carries out advertising 32,889 These tours are organized with the cooperation of campaigns intended to promote Japanese agricultural and livestock prod- * FY2008-FY2019 ucts in the countries where the athletes are competing. JAs to provide consumers who are generally unfa- miliar with agricultural practices with an opportunity to interact with producers by experi- encing farm work, including planting Implemented: and harvesting vegetables and rice, 65times Total participants: so that they can have a better under- 2,556 standing of agriculture. * FY2006–FY2019 42 ZEN-NOH REPORT 43 Structure of the JA Group Corporate Governance

In order to manage its operations in accordance with the wishes of members, ZEN-NOH has formed a sound, highly transparent corporate Structure of the JA Group governance structure through the establishment of the General Meeting and Meeting of Delegates as its highest decision-making bodies, the Supervisory Board to decide on business execution policies and other important decisions, the Board of Directors to carry out everyday business execution in accordance with the decisions of the Supervisory Board, and the Board of Auditors to audit the state of performance ZEN-NOH About Marketing and Supply Business JA Group Organizational Chart of duties by the Supervisory Board and the Board of Directors. Representative of JAs This business undertakes Agricultural and Live- In addition to handling this function, stock Products Sale Business, delivering the agri- (economic activities) consulting and general coordination cultural and livestock products produced by mem- among JAs, these businesses and ac- bers to consumers, and also undertakes Production tivities deal mainly with agricultural Materials Sale Business, providing members withTotal membership:Total membership: 10.49 million 10.49 million policy issues and public relations. the materials they need. (as of the end of FY2018)(as of the end of FY2018) JAs (584) (Group Finance and Business Committee) Livestock Rice Production Business Business Materials Committee Committee Business Nationaal lteiovenlal leve Committee N l JAs<577> JAs<577> environment Our General Fruits and Consumer es Vegetables tiv Management Business ra ves Committee Business Committee pe ati efectural lev U oo er Pr ctuerlal Committee l C op refe leve ZEN-NOH KEIZAIREN JAs H ra U o P P l C tu l C r General Meeting, Meeting of Delegates l e u H ra fe P ZEN-NOH KEIZAIREN JAs N ic u t c r E r C lt ur - e J <32 prefectural <8> (prefectural Outside g u I ion a fe A Z A N ic n es J l t c (quorum of 220) f E r A U tiv icipal le A u - J <32 prefectural <8> (prefectural Governance Compensation Investment A o g al a n un ve s r Z headquarters> n Z A K r er I io Ms l a E A JAs)<7> J o t n e l Committee Committee Screening i f O n op A U iv ipal JA N n o e o l t nic lev Z headquarters> A U C C K a ra u el s Committee U n l l r e M - E JAs)<7> l J o a a t p a i H r r O n o N Aomori, Iwate, Hokuren, Nara, Shimane, r n u u e o N t C t lt U C C O Appointment, Submittal, n U c u l l e l - Miyagi, Akita, Shizuoka, Aichi, Yamaguchi, Appointment e f ic H a a H N Aomori, Iwate, Hokuren, Nara, Shimane, C a r r r r e u u J dismissal reporting t r g t t e C l A O Yamagata, Fukui, Kagawa, Kochi, n P A c F h f u e P Miyagi, Akita, Shizuoka, Aichi, Yamaguchi, e e T o f ic d r H C r e e K e f J Fukushima, Wakayama, Saga, Okinawa r r g e a e C c E t A Yamagata, Fukui, Kagawa, Kochi, P A F h o i t f o u e P Total o I n r Ibaraki, Tochigi, Kumamoto, T r o p d a Z e o e K e l f Fukushima, Wakayama, Saga, Okinawa f r r E e A a A a c C c Gunma, Miyazaki, E t t g o (quorum of 20) t i o i Board of Auditors Supervisory Board I v u r o n o

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(as of the end of FY2018) 0 (of whom 3 are outside auditors) 2 are Vice Chairmen, and 5 are outside members) K Z 4 2 Nagano, Niigata,Kanagawa, y Y E A 0 million r 10.49 2 t g O s Toyama, N r 5 k ly ) e Yamanashi, R ic 8 n r (as of the end of FY2018)u n 0 o K u o Ishikawa, Gifu, 4 J i a F Appointment, Submittal, E lt f N t s 2 Nagano, Niigata, Auditor’s Oce Auditing a e d y Y uA o r 0 B N r E iv n r Mie, Shiga, s e t t supervision reporting ag 2 a Prefectural O l a d a s Toyama, r C ( R e r N e k o JA s F e ly I r e Kyoto, Osaka, i n N r headquarters R c op o I it p tu n n e ti d o u K l o u ra cia e o J u o Ishikawa, Gifu, tive sso H i a F committees E lt A S Cr l C f U iNc t s Hyogo, Tottori, O u l a o r a e B d N t r A ra ur H Eg r iv n Mie, Shiga, h a J u lt s A e t a e l ct u a C r d a Okayama, r C fe ic ( oR e r N e Deciding Board of Directors (quorum of 9-11) l pr o JA re gr s f F e I r e e l- P A n N kN u Kyoto, Osaka, v feocptura f o I nI it p t Hiroshima, Related e er o iati R a d o K l on policies l f ative soc HB e o u ed As O e r l C U ic Tokushima, Hyogo, Tottori, business O O erations N tiSv l C a r t t Aa a r g committees h h E Jer ur tu H A Ehime, Fukuoka, e e H p ct ul r Okayama, (1) r r T oo fe ic C o President & CEO na l pr l C re gr N f ti ev efectural- tra P f A I k Nagasaki, OitaHiroshima, Reporting on e Cen o an al- l ns R B levelfe ratio O e Tokushima, of results O feddera s iv t tion N at h CreditE er Business Ehime, Fukuoka, Compliance er H op Senior Executive Vice Presidents (2) businesses Our n T Co Committee at ral ZEN-NOH membershipNagasaki, Oita (923) (as of March 31, 2020) ion eThisnt business provides vari- al-level rations C fede ous financial services for Combined JA (604), specialized JA (72), KEIZAI- Internal Mutual Insurance Busi- REN (8), specialized federations (26), credit Controls System members, funded by the savFull- members Executive Vice Presidents (7) Promotion (762)… federations/welfare federations (49), national(as of March 31, 2020) Subcommittee ness ings of members. ZEN-NOHfederations membership (3) (923) Our insurance business supports Combined JA (604), specialized JA (72), KEIZAI- Executive Vice Executive Vice Secondary Network a“liate companies (154), consumer Executive Vice the livelihoods of members, offer- members Fullcooperatives members (3), fisheriesREN (8), cooperatives specialized (2),federations (26), credit Presidents in Presidents in ing mutual life insurance, mutual Other Businesses … (762)forestry… cooperativefederations/welfare (1), tobacco growers’ federations (49), national Presidents in (161) association (1) federations (3) charge of charge of non-life insurance, and mutual pen- Other businesses include the public welfare business, Internal auditing sections charge of regions sion insurance. newspaper information business, publishing and cultural* Numbers of JAs andSecondary prefectural JAs are currentNetwork as of a“liateJuly 2020 companies (154), consumer administration businesses cooperatives (3), fisheries cooperatives (2), program business, and tourism business (Japan Agricul- members … forestry cooperative (1), tobacco growers’ tural News, Ie-No-Hikari Association, Nokyo Tourist Cor- (161) association (1) poration, JA ZENKOREN, JA KOSEIREN). activities PR/SR * Numbers of JAs and prefectural JAs are current as of July 2020 Guidance, Guidance, Guidance, supervision supervision supervision

Headquarters Auditing Prefectural headquarter prefectural to related matters basic on Deliberation About the JA Group ZEN-NOH’s Role administrative Headquarters business sections headquarters JAs are organizations that conduct business activities through the participation The ZEN-NOH Group is responsible for the marketing and sections and collective efforts of their members. They collectively purchase the materials supply business of the JA Group, including the sale of agricul- Management Management Management necessary for agricultural production and market agricultural products in accor- tural products and supply of materials for use in agricultural dance with the provisions of the Agricultural Co-operatives Act. They are also in- production. It cooperates with JAs, which are members of the Auditing volved in a wide range of business activities including: those that provide members ZEN-NOH Group, and prefectural federations to create econo- Subsidiaries, subsidiary corporations, etc. organization Our with products necessary for daily life; credit services such as savings accounts and mies of scale in carrying out competitive marketing and supply loans; and mutual insurance services that offer life, property, and car insurance. activities. These activities support increases in members’ farm Auditing Prefectural-level federations and central unions as well as the national-level incomes and expansion of their agricultural production capaci- federation ensure that the business activities of Jas are conducted efficiently. The ty. ZEN-NOH’s role is to supply food products to consumers Auditing by an external Prefectural headquarters entire JA organization is known as the JA Group. It consists of three levels: JAs; pre- across Japan through such activities. auditing firm steering committee fectural-level JA federations and CHUOKAI (Prefectural Central Union of Agricultural Cooperatives) organizations; and the national JA federation.

44 ZEN-NOH REPORT 45 Financial Information

FY2019 Profit and Loss Statement FY2019 Turnover (Unit: 100 million yen) FY2019 Consolidated Profit and Loss Statement Breakdown of Operating Earnings by Business Segment (April 1, 2019–March 31, 2020) (Unit: million yen) (April 1, 2019–March 31, 2020) (Unit: million yen) (April 1, 2019–March 31, 2020) (Unit: million yen) Business Operation Result Previous year Year-on-year Item Amount Item Amount Business Operation Amount Previous year Year-on-year Rice and grains business total 7,094 6,932 102% Previous year Year-on-year Previous year Year-on-year 1. Total operating income 88,635 91,272 97% Pearl Rice 443 480 92% 1. Total operating income 207,057 216,259 96% Rice and grains 811,943 784,867 103% (1) Operating earnings 4,561,977 4,681,651 97% Rice 5,522 5,336 103% ZEN-NOH About (1) Operating earnings 6,008,300 6,198,586 97% Fruits and vegetables 1,178,821 1,212,800 97% (2) Operating expenses 4,473,341 4,590,379 97% Wheat and barley 252 212 119% (2) Operating expenses 5,801,242 5,982,326 97% Agribusiness and 2. Business administrative expenses 93,126 94,493 99% Soybean and coleseed 260 250 104% 850,756 870,642 98% 2. Business administrative expenses 202,567 204,372 99% production materials (1) Personnel expenses 56,858 58,431 97% General farming products 617 654 94% Livestock 2,119,285 2,204,552 96% (2) Business expenses 8,907 9,537 93% Fruits and vegetables business total 10,987 11,288 97% (1) Personnel expenses 126,438 128,524 98% (3) Office expenses 8,171 7,439 110% Fruits and vegetables 10,924 11,223 97% (2) Business expenses 17,664 18,645 95% Consumer 1,021,484 1,093,736 93% (4) Taxes and dues 7,290 7,366 99% Prefecture-level direct sales 63 64 97% (3) Office expenses 11,787 11,135 106% Other (transportation, etc.) 182,539 191,966 95% Agribusiness and production (5) Equipment/facility expenses 8,650 8,619 100% 7,870 8,054 98% (4) Taxes and dues 10,631 10,683 100% Total 6,164,829 6,358,566 97% (6) Depreciation expenses 3,248 3,100 105% materials business total (5) Equipment/facility expenses 25,837 25,528 101% Elimination* Operating profit - 4,491 - 3,221 - Sales projects 0 - - - 156,529 - 159,979 - (6) Depreciation expenses 9,868 9,543 103% 3. Non-operating profit or loss 11,897 11,376 105% JA Green 46 48 96% Total 6,008,300 6,198,586 97% Fertilizer 1,843 1,918 96% (7) Other expenses 339 310 109% environment Our Ordinary income 7,406 8,154 91% * This indicates inter-segment sales/transfers. 4. Extraordinary profit or loss - 2,725 - 2,066 - Agrichemicals 1,204 1,203 100% Operating profit 4,490 11,887 38% Income before taxes 4,680 6,087 77% Production materials 361 390 93% 3. Non-operating profit or loss 12,038 17,464 69% Provision for corporate, Packing materials 145 149 97% Ordinary income 16,528 29,351 56% residential and business taxes 318 324 98% Cardboard products 1,010 983 103% 4. Extraordinary profit or loss - 5,100 - 1,923 - Adjustment to corporate tax, etc. 3,889 1,575 247% Agricultural machinery 1,226 1,277 96% Income before taxes 11,428 27,428 42% Net income 471 4,187 11% Facility and housing 2,035 2,085 98% Livestock business total Provision for corporate, residential 10,364 10,462 99% and business taxes 3,788 7,652 49% Livestock production business 960 1,000 96% Adjustment to corporate tax, etc. 4,805 4,708 102% Turnover by Different Business Operations Single-ingredient feed and feed ingredients 3,710 3,716 100% Total corporate tax, etc. 8,593 12,361 70% 7,674 11,119 8,268 11,361 10,161 FY2014 48,584 Livestock product sales 1,786 1,864 96% Income 2,835 15,066 19% FY2015 7,140 11,754 8,611 11,116 8,325 46,946 Dairy farming business Income attributable to non-controlling initiativesOur 3,160 3,099 102% 500 2,150 23% FY2016 7,123 11,937 8,009 10,729 8,182 45,981 Livestock sales 748 783 95% interests Net income FY2017 7,181 11,643 8,118 10,485 8,956 46,382 Consumer business total 8,453 9,190 92% 2,335 12,916 18% Automobiles FY2018 6,932 11,288 8,054 10,462 9,190 45,925 145 177 82% Oil 5,656 6,194 91% FY2019 7,094 10,987 7,870 10,364 8,453 44,768 Gas 743 858 87% ■Rice and grain production ■Fruit and vegetables/farm products Total Daily necessities (Unit: 100 million yen) 1,908 1,962 97% ■Agribusiness/production materials ■Livestock ■Consumer Grand total 44,768 45,925 97% * Figures shown are rounded off to the nearest 100 million yen. FY2019 Consolidated Balance Sheet (as of March 31, 2020) (Unit: million yen) FY2019 Balance Sheet (as of March 31, 2020) (Unit: million yen) Our businesses Our Assets Amount Change over Liabilities and Member’s Equity Amount Change over Assets Amount Change over Liabilities and Member’s Equity Amount Change over Previous year previous year Previous year previous year Previous year previous year Previous year previous year 1. Current assets 1,076,667 1,186,318 - 109,651 3. Current liabilities 912,438 1,018,256 - 105,817 1. Current assets 791,133 843,661 - 52,528 3. Current liabilities 750,374 807,689 - 57,315 (1) Cash and deposits 107,091 125,176 - 18,084 (1) Notes payable 14,825 15,089 - 264 Cash 204 359 - 154 Notes payable 13,274 13,178 95 (2) Notes receivable 1,802 2,201 - 399 (2) Short-term borrowing 293,786 344,527 - 50,740 Deposits 20,085 19,825 259 Short-term borrowing 191,068 200,442 - 9,374 (3) Marketable securities 18,884 20,182 - 1,298 (3) Accounts payable 473,927 522,001 - 48,073 Notes receivable 715 654 60 Accrued liabilities 481,689 529,182 - 47,493 (4) Accounts receivable 437,651 484,058 - 46,406 (4) Unliquidated liabilities 13,017 11,416 1,601 Marketable securities 18,370 19,702 - 1,331 Unliquidated liabilities 12,959 11,267 1,691 (5) Unliquidated claims 154,221 159,862 - 5,640 (5) Other current liabilities 107,686 115,541 - 7,855 Accounts receivable 404,441 453,467 - 49,025 Other current liabilities 45,755 47,595 - 1,839 (6) Inventories 269,758 256,167 13,590 (6) Reserve for bonus 9,194 9,438 - 244 Unliquidated claims 177,077 180,629 - 3,552 Reserve for bonus 4,001 4,433 - 431 (7) Other current assets (7) Deferred tax liabilities Reserve for losses from gift 90,561 136,937 - 46,375 - 240 - 240 Inventories 165,993 161,070 4,923 1,596 1,557 39 (8) Deferred tax assets - 5,170 - 5,170 4. Fixed liabilities 220,019 224,834 - 4,815 voucher redemption activities PR/SR Allowance for doubtful Other current assets 8,816 8,712 104 Reserve for point card certificates 29 32 - 2 (9) (1) Long-term borrowing accounts - 3,305 - 3,437 131 103,624 105,839 - 2,214 Deferred tax assets 0 3,267 - 3,267 4. Fixed liabilities 71,483 68,977 2,506 2. Fixed assets 676,505 681,930 - 5,425 (2) Liabilities for retirement benefits 69,569 73,450 - 3,881 Allowance for doubtful accounts - 4,571 - 4,027 - 543 Long-term borrowing 13,761 7,265 6,495 (1) Tangible fixed assets 1,103,131 1,083,348 19,782 (3) Other long-term provisions 8,030 7,770 260 2. Fixed assets 359,698 366,626 - 6,928 Long-term accrued liabilities 5,496 5,383 112 Less accumulated (4) Long-term monetary Tangible fixed assets 337,251 335,937 1,313 Long-term deposits received 1,431 1,386 45 depreciation - 685,857 - 667,563 - 18,294 liabilities 20,065 19,974 91 Less accumulated depreciation - 195,346 - 194,106 - 1,240 Long-term business deposits 986 1,159 - 172 (2) Intangible fixed assets 12,456 12,357 99 (5) Assets retirement obligations 6,415 6,183 232 Intangible fixed assets 5,848 5,652 195 Assets retirement obligations 2,405 2,286 119 (3) Outside investments 168,993 171,539 - 2,546 (6) Long-term deferred tax liabilities 11,321 10,557 764 Outside investments 163,022 170,122 - 7,099 Reserve for retirement benefits 47,081 51,153 - 4,071 (4) Long-term securities 22,605 28,186 - 5,581 (7) Other fixed liabilities 991 1,059 - 67 Long-term securities 22,353 27,475 - 5,121 Allowances and reserves 320 342 - 22 (5) Long-term loans receivable 22,036 23,063 - 1,027 Total liabilities 1,132,458 1,243,090 - 110,632 Long-term accounts receivable 457 581 - 124 Total liabilities 821,858 876,667 - 54,808 (6) Long-term prepaid expenses 1,359 1,567 - 208 5. Net assets 620,714 625,158 - 4,444 Long-term prepaid expenses 1,018 1,279 - 260 5. Net assets 328,973 333,621 - 4,648 organization Our Fixed assets for retirement (7) (1) Capitalization Other fixed assets 23,298 18,378 4,919 Capitalization 115,255 115,257 - 2 benefits 2,416 2,225 191 115,255 115,257 - 2 Long-term deferred tax assets 2,668 2,186 481 Capital reserve 9,622 9,622 - (8) Other fixed assets 20,007 20,110 - 103 (2) Capital reserve 9,780 9,754 25 Allowance for doubtful accounts Revaluation reserve - 211 - 208 - 3 36 36 - (9) Long-term deferred tax assets 10,493 8,162 2,331 (3) Retained earnings 428,372 428,329 42 Allowance for doubtful accounts -outside investments - 663 - 673 9 Earned surplus reserve 98,317 97,477 840 (10) Allowance for doubtful accounts - 936 - 869 - 67 (4) Evaluation adjustment 16,185 21,143 - 4,958 Voluntary reserve Allowance for doubtful 85,773 85,494 278 (11) - 200 - 200 - (5) Minority equity 51,217 50,748 468 Unappropriated earnings 5,493 8,406 - 2,912 accounts-outside investments Evaluation adjustment 14,475 17,326 - 2,851 (6) Other - 96 - 76 - 20 Total 1,150,831 1,210,288 - 59,456 Total 1,150,831 1,210,288 - 59,456 Total 1,753,172 1,868,249 - 115,077 Total 1,753,172 1,868,249 - 115,077

46 ZEN-NOH REPORT 47 Officers Group Companies

Supervisory Board ZEN-NOH is working to strengthen its competi- FY2019 Non-Consolidated / Consolidated Turnover (Operating Earnings) by Business tiveness by operating through its subsidiaries to

speed up the decision-making process and Rice and Grain Business ■ Non-Consolidated ■ Consolidated

streamline management according to the charac- Fruit and Vegetables Business ZEN-NOH About teristics of the business. Agribusiness and Production Chairman Vice Chairman Vice Chairman SHINOHARA Sueji NAGASAWA Yutaka YAGIOKA Tsutomu TAKAHASHI Takeshi Materials Business KANNO Yukio TAKAHASHI Masashi NORITOMI Yukio (Chairman, Hokuren (Chairman of Adminis- (Chairman of Adminis- (Chairman of Adminis- Livestock Business (Chairman of Adminis- (Chairman of Adminis- (Chairman of Adminis- Federation of Agricultur- trative Committee of trative Committee of trative Committee of trative Committee of trative Committee of trative Committee of al Cooperatives) Yamagata Prefectural Ibaraki Prefectural Tochigi Prefectural Consumer Business Ehime Prefectural Miyagi Prefectural Fukuoka Prefectural Headquarters) Headquarters) Headquarters) Headquarters) Headquarters) Headquarters) 0 5,000 10,000 15,000 20,000 25,000 (100 million yen) Overseas Bases Page Notes: 1. Turnover is non-consolidated and operating earnings are consolidated. 2. Consolidated (operating earnings) is before exclusion of inter-business turnover. ZEN-NOH Subsidiaries and Affiliated Companies environment Our ・ A subsidiary is a company in which ZEN-NOH or its subsidiary holds more than 50% of voting rights. ITOU Shigeru IMAI Choji TANIGUCHI Shunji NAKAGAWA Yasuhiro NAKADE Atsunobu ISHIKAWA Toshiki KANEKO Mitsuo ・ An affiliate is a company in which ZEN-NOH or its subsidiary holds between 40% to 50% of voting rights, and holds a majority on the board of directors. (Chairman of Adminis- (Chairman of Adminis- (Chairman of Administra- (Chairman of Adminis- (Chairman of the (Chairman, JA Shimane) (Chairman, JA trative Committee of trative Committee of tive Committee of Mie trative Committee of Supervisory Board, JA Yamaguchi) Nagano Prefectural Niigata Prefectural Prefectural Headquarters) Kyoto Prefectural Nara) Rice and Grain / Fruit and Vegetables / Production Materials / Livestock / Export / Consumer / General

Headquarters) Headquarters) Headquarters) Production / Collection / Storage / Distribution Main office ZEN-NOH Green Resources Corporation Main office ZEN-NOH Grain Corporation (USA) Main office Hokuren Snow Brand Feed Co., Ltd. Main office ZEN-NOH Logistics Co., Ltd. Councilors Main office ZEN-NOH Green Main office ZEN-NOH Grain Canada Corporation (Canada) Main office ZEN-NOH Livestock Service Co., Ltd. Yamanashi Sankei Co., Ltd. Resources (Thailand) Co., Ltd. (Thailand) Main office ZEN-NOH Grain Main office Kyodo Fish Meal Co., Ltd. Iwate Kumiai Fertilizer Co., Ltd. Brasil Holdings Main office Uwajima Fish Feeds Co., Ltd. Tochigi JA Green-Tochigi Co., Ltd. Ltda. (Brazil) Main office Kita-Nihon JA Livestock Co., Ltd. Ishikawa JA Agri Line Ishikawa Co., Ltd. Main office ZEN-NOH ACA Limited (Hong Kong) Main office Institute of Livestock Business Management

Hiroshima ZEN-NOH Agri West Co., Ltd. Main office ZEN-NOH Hay, Inc. (USA) Main office Nishi-Nihon JA Livestock Co., Ltd. initiativesOur Tokushima Tokushima Kyodo Fertilizer Co., Ltd. Main office ZEN-NOH Silo Corporation Main office JA Kitakyushu Farm Co., Ltd. Gunma JA House Service Co., Ltd. Main office Ishinomaki Futo Silo Corporation Main office JA Usukitamago Farm Co., Ltd. CHO Michio ARAKAWA Takashi AKAMATSU Hikaru YAMAZAKI Hisashi ISHIZUKA Kunio NATSUME Makoto TANAKA Keisuke Hiroshima ZEN-NOH Agri Support Hiroshima Co., Ltd. Main office Kushiro Silo Corporation Fukushima Midori Kosan Co., Ltd. (Chairman of Kumamoto (Administration of (Administration of (Lawyer) (Former corporate (Former corporate (Chairman, JA Youth) Main office JA ZEN-NOH Kita-Nihon Cooperative Feed & Mills Co., Ltd. Okayama Okayama JA Livestock Co., Ltd. Prefectural Economic agriculture, forestry and cooperatives) executive) executive) Main office JA Higashi-Nihon Cooperative Feed & Mills Co., Ltd. Main office ZEN-NOH Grain Feed, Federation of Agricultural fisheries) Cooperatives) Main office JA Nishi-Nihon Cooperative Feed & Mills Co., Ltd. LLC (USA) Main office JA Kita-Kyushu Cooperative Feed & Mills Co., Ltd. Main office SFG Holdings Limited (UK) Councilors Board of Auditors Main office Hokuren Cooperative Feed Mills Co., Ltd. Main office Scotch Frost of Main office Scientific Feed Laboratory Co., Ltd. Glasgow Ltd (UK) Main office ZEN-NOH Pearl Rice Corporation Main office ZEN-NOH Fresh Produce Marketing Corporation Niigata Niigata Coop Livestock Co., Ltd. Main office Sumita Foods Corporation Main office Kirameki Co., Ltd. Saitama Kawagoe Kaki Ichiba Co., Ltd. Ibaraki Ibaraki Kyodo Shokuniku Co., Ltd. Main office Asahi Broiler Co., Ltd. Iwate Jun-jo Rice Iwate Co., Ltd. Yamagata Yamagata Foods Co., Ltd. Gunma Gunma-ken Syokuniku Oroshiuri Ichiba Co., Ltd. Gunma Gunma Noukyou Chicken Foods Co., Ltd. businesses Our Sales / Process Miyagi Pearl Rice Miyagi Corporation Main office Nihon Kajitsu Kougyou Co., Ltd. Nagano Nagano Meat Corporation Main office JA ZEN-NOH Tamago Co., Ltd. Nagano MYPEARL NAGANO Co., Ltd. Ehime Ehime Beverage Inc. Tottori Tottori Meat Center Co., Ltd. Main office Miyako Shokuhin Co., Ltd. Ishikawa Beishin Ishikawa, Inc. Fukuoka Fukuren Co., Ltd. Ehime JA Ehime AI-PAX Co. Hiroshima ZEN-NOH Hiroshima Keiran Co., Ltd. KASADA Sachimi OKAWARA Shuichiro KITAZATO Kiyokazu NAGASHIMA Satoshi KOMIYAMA Sumie HARADA Shohei AKIKAWA Kenji Shiga Pearl Rice Shiga Co., Ltd. Oita JA Foods Oita Co., Ltd. Fukuoka Kyushu Kyodo Shokuniku Inc. Ehime JA Ehime Fresh Foods Co., Ltd. (Director, National (Lawyer) (Certified public (Former corporate Okayama Okayama Pearl Rice Corporation Ehime Ehime Foods Co., Ltd. Nagasaki Sasebo Meat Center Co., Ltd. Main office Tohoku Kyodo Nyugyo Co., Ltd. Council of the accountant) executive) Ehime HIME RICE Corporation Main office JA ZEN-NOH Meat Foods Co., Ltd. Yamagata Yamagata Prefecture Meat Public Corporation Co.,Ltd Agricultural Cooperative Women’s Association) Main office ZEN-NOH Foods Co., Ltd. Main office JA Takasaki Ham Co., Ltd. Mie JA ZEN-NOH Mie Meat Co., Ltd. Board of Directors Main office JAPAN AGRI PRODUCTS EUROPE JSC Main office Yoshida Ham Co., Ltd. Main office ZEN-NOH Chicken Foods Corporation (Bulgaria) Main office Meat Land Co., Ltd. Main office Miyazaki Kumiai Chicken Foods Corporation Yamagata Shonai Meat Public Service Corporation Co.,Ltd Main office Kagoshima Kumiai Chicken Foods Corporation Main office J-ACE Co., Ltd. Main office ZEN-NOH Energy Corporation Hiroshima Hiroshima Kumiai Fuel Co., Ltd. Main office A-Coop Nishi-Nihon Co., Ltd. Main office ZEN-NOH Meat Foods (Hong Kong) Main office ZEN-NOH Tohoku Energy Corporation Tokushima JA Tokushima Fuel Service Co., Ltd. Main office A-Coop Kyushu Co., Ltd. activities PR/SR Limited (Hong Kong) Main office ZEN-NOH East Japan Energy Corporation Ehime JA Ehime Energy Co., Ltd. Ishikawa Jacom Ishikawa Co., Ltd.

Retail Main office ZEN-NOH Kansai Energy Corporation Fukuoka Fukuoka Life Energy Co., Ltd. Mie JA ZEN-NOH Mie Service Co., Ltd. Main office ZEN-NOH West Japan Energy Corporation Nagano JA Auto Nagano Co., Ltd. Fukushima JA Life Create Fukushima Co., Ltd. Main office ZEN-NOH Kyushu Energy Corporation Tottori Nihonkai Mitsubishi Motors Marketing Corporation Tochigi JA Tochigi Life Co., Ltd. President & CEO Senior Executive Vice Senior Executive Vice Executive Vice President Executive Vice President Executive Vice President Executive Vice President Main office JA Energy Chiba Co., Ltd. Main office ZEN-NOH Kumix Co., Ltd. Saitama Pearl Total Service Co., Ltd. YAMAZAKI Shuji President President YASUDA Tadataka KUBO Shozo TAKAO Masayuki TAKEMOTO Shoji NOGUCHI Sakae KUWADA Yoshifumi Ibaraki JA Ibaraki Energy Co., Ltd. Main office A-Coop Tohoku Co., Ltd. Chiba JA Life Chiba Co., Ltd. Saitama JA Energy Saitama Co., Ltd. Main office A-Coop Kanto Co., Ltd. Nagano Nagano A-Coop Supply Co., Ltd. Hyogo JA Energy Hyogo Co., Ltd. Main office A-Coop Kinki Co., Ltd. Main office JA ZEN-NOH International Corporation Main office ZEN-NOH America Corporation (USA) Main office ZEN-NOH International Hong Kong Main office ZEN-NOH SHANGHAI

Chief Officer Trade Main office ZEN-NOH International Europe Limited (Hong Kong) CO.,LTD.

Limited (UK) Main office Taiwan ZEN-NOH International organization Our Main office ZEN-NOH International Asia Cooperation (Taiwan) Pte. Limited (Singapore) Administration

Business Main office Agrinet Service Corporation Main office ZEN-NOH Business Support Co., Ltd.

Nagano ZEN-NOH Nagano Keisan Center Co., Ltd.

General Yamagata ZEN-NOH Life Support Yamagata Co., Ltd. Toyama JA Life Toyama Co., Ltd. Nagano Naganoken Nokyo Chokuhan Co., Ltd. Executive Vice President Executive Vice President Executive Vice President Chief Officer KURASHIGE Tokuya SAITO Yoshiki YAMADA Hiromoto TOI Kazuhisa Fukushima JA Pearl Line Fukushima Co., Ltd. Ishikawa JA Kensetsu Energy Co., Ltd. Hiroshima ZEN-NOH Hiroshima Chokuhan Co., Ltd. Toyama Kumiai Kensetsu Co., Ltd. Gifu Gifu Agri-foods Co., Ltd. Main office Yamaguchi Nokyo Chokuhan Co., Ltd. Nagano JA Agriyell-Nagano Co., Ltd. Nagasaki Nagasaki-ken Nokyo Chokuhan Co., Ltd.

…Overseas …Affiliate Rice and Grain…■／Fruit and Vegetables…■／Production Materials…■／Livestock…■／Export …■／Consumer…■／General…■

48 ZEN-NOH REPORT 49 ZEN-NOH Profile

ZEN-NOH official website: National Federation of Agricultural Name https://www.zennoh.or.jp/ Cooperative Associations (ZEN-NOH) Message from english/index.html table tennis player ISHIKAWA Kasumi Established March 30, 1972

All member cooperative unions work together to promote ZEN-NOH businesses, thereby increasing the production efficiency of the work of member farmers, improving their economic conditions, and contributing to the raising of their status in society. Business goal Our businesses, which provide production materials, daily necessities, and process and market agricultural products, are conducted with this goal in mind.

Office address JA Bldg., 1-3-1 Otemachi, Chiyoda-ku, Tokyo 100-6832

Membership 923 cooperative unions (including 161 secondary unions) (as of March 31, 2020)

Capitalization 115,255 million yen (as of March 31, 2020)

Employees 7,987 (as of March 31, 2020) Nittaku News Photo courtesy : Total transaction FY 2019 results: 4,476.8 billion yen volume

136 companies (including subsidiaries, subsidiary corporations, and over- Our Cooperatives: seas companies), mainly engaged in the rice and grain, fruits and vegeta- https://www.zennoh.or.jp/ Group companies bles, production materials, livestock products, export and consumer busi- english/about_zen-noh/ nesses (as of March 31, 2020) global_network/index.html As a ZEN-NOH sponsored athlete, I will continue to do my utmost to ZEN-NOH’s Organization support Japanese food and Japanese agriculture.

Headquarters Prefectural headquarters

Auditor’s Office Rice Business Division Aomori Prefectural Tokyo Municipal Osaka Prefectural I would like to take this opportunity to thank all of you for the Headquarters Headquarters Headquarters Rice Production and Procure- Internal Audit Division Iwate Prefectural Kanagawa Prefectural Hyogo Prefectural encouragement that I have received. ment Planning Division Headquarters Headquarters Headquarters

Corporate Planning Division Rice Division Miyagi Prefectural Yamanashi Prefectural Tottori Prefectural Last year, while I was competing overseas, ZEN-NOH provided me with traditional Headquarters Headquarters Headquarters Finance Division Farm Produce Division Japanese cuisine (“ washoku”) made using Japanese rice and beef, and also “omusubi” (Wheat, Barley, Soybean & Starch) Akita Prefectural Nagano Prefectural Okayama Prefectural Headquarters Headquarters Headquarters Legal & Risk Management Division Fresh Produce Division rice-balls, which gave me the energy I needed to complete challenging schedules. (Vegetable & Fruit) Yamagata Prefectural Niigata Prefectural Hiroshima Prefectural Headquarters Headquarters Headquarters General Affairs & Personnel Division Production Materials Business Division Fukushima Prefectural Toyama Prefectural Tokushima Prefectural Headquarters Headquarters Headquarters Public Relations & Research Division Crop Production Division In the future, I will continue to eat Japanese agricultural and livestock products, Ibaraki Prefectural Ishikawa Prefectural Ehime Prefectural Subsidiary Group Management Division Facilities & Asset Headquarters Headquarters Headquarters Management Division and do my best to demonstrate an energetic performance that will help to inspire others. Tochigi Prefectural Gifu Prefectural Fukuoka Prefectural IT Promotion Division Livestock Business Division Headquarters Headquarters Headquarters I look forward to receiving your continued support. Sales Development Division Gunma Prefectural Mie Prefectural Nagasaki Prefectural Livestock General Headquarters Headquarters Headquarters Planning Division Food Market Division Saitama Prefectural Shiga Prefectural Oita Prefectural ISHIKAWA Kasumi, Japan National Table Tennis Team. Livestock Production Headquarters Headquarters Headquarters Division Exports Promotion Division Chiba Prefectural Kyoto Prefectural Dairy Division Headquarters Headquarters Agribusiness General Planning Division Consumer Business Division

Energy Division

Life Support Division

50